1. A divestment: a. entails selling a business unit to the highest bidder which
ID: 423680 • Letter: 1
Question
1. A divestment:
a. entails selling a business unit to the highest bidder which might include another company, a group of independent investors, or the management of that unit.
b. usually happens right after an acquisition.
c. is the same as a spinon.
d. is the least attractive exit strategy.
e. is not an effective restructuring strategy.
2. T/F The principle concern of corporate-level strategy is to identify the industry or industries a company should participate in to maximize its long-run profitability.
3. __________________________are something physical, such as land, buildings, plant, equipment, inventory, and money.
a. Distinctive competencies
b. Organizational factors
c. Tangible resources
d. Intangible resources
e. Capabilities
Explanation / Answer
1. A divestment:
b. usually happens right after an acquisition.
When the acquisition strategies go wrong and the Firm realizes the same after the acquisition, they resort to divest at least portion of its activities so that they can concentrate upon the core activities thereby ensuring the maintenance of Competitive edge in the market.
2. T/F The principle concern of corporate-level strategy is to identify the industry or industries a company should participate in to maximize its long-run profitability.
True
A Corporate-level strategy considers such a selection of Businesses in which an action could be undertaken by managing such a business-mix that helps the Company to compete across several industry thereby gaining a competitive edge.
3. __________________________are something physical, such as land, buildings, plant, equipment, inventory, and money.
c. Tangible resources
Tangible resources are something that could be physically touched and felt and can be obtained to form a part of Company’s Physical assets as well.
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