Retrenching to a narrower diversification base is
A. usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth.
B. sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
C. a strategy that allows a diversified firm's energies to be concentrated on building strong positions in a smaller number of businesses rather the stretching its resources and managerial attention too thinly across many businesses.
D. an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.
E. a strategy best reserved for companies in poor financial shape.
Answer: C
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Answer the following statements true (T) or false (F)
1. PERT stands for Program Event Review Technique. 2. There are five steps in the PERT/CPM process, the last of which is finding the critical path of the project. 3. Managers typically find the simplest and quickest solution to problems which is usually based on the assumption that a subordinate lacks the training, supervision, or information needed. 4. The example of the Hot Dog Stand blueprint is incomplete because it does not factor in what happens prior to the guests ordering the hot dog.
Answer the following statements true (T) or false (F)
1. Companies evaluate investment centers using the same measures as the profit centers 2. Operating income alone does not indicate how efficiently a segment is using its assets. 3. Investment center managers are responsible for generating profits and making the best use of the investment center's assets. 4. To adequately evaluate an investment center's financial performance, summary performance measures should include both the division's operating income and its assets. 5. Net income is used in the numerator of the return on investment formula.
Goyo Company owns 87% of the outstanding stock of Luis company. Goyo Company is referred to as the
A) parent B) minority interest C) affiliate D) subsidiary
The phrase ‘the ____’ is used to include the concept of organizational development in its broadest sense.
a. Managerial applications of behavioral science b. Diversified organization c. Organizational change d. Management of change