Brinker International operates restaurants in several different segments of the casual
dining market. This is
a. a relatively high level of
... [Show More] diversification.
b. an example of product diversification.
c. unlikely to reduce variability in the firm's profitability since the restaurants are all in
the casual dining category.
d. an example of related linked diversification. - Answer b. an example of product
diversification.
On the most basic level, corporate-level strategy is concerned with and how to
manage these businesses.
a. whether the firm should invest in global or domestic businesses
b. what product markets and businesses the firm should be in
c. whether the portfolio of businesses should generate immediate above-average
returns or should be troubled businesses which will create above-average returns
only after restructuring
d. whether to integrate backward or forward. - Answer b. what product markets and
businesses the firm should be in
Which acquisition would be considered the LEAST related?
a. a candy manufacturer purchases a chemical laboratory specializing in food
flavorings.
b. a chain of garden centers acquires a landscape architecture firm.
c. a hospital acquires a long-term care nursing home.
d. an upscale "white-tablecloth" restaurant chain acquires a travel agency - Answer
d. an upscale "white-tablecloth" restaurant chain acquires a travel agency
The more "constrained" the relatedness of diversification,
a. the less likely the firm's portfolio of businesses will reduce the firm's variability in
profitability.
b. the wider the variation in the portfolio of businesses owned by the firm.
c. the more links there are among the businesses owned by an organization.
d. lower the proportion of total organizational revenue derived from the dominantbusiness. - Answer c. the more links there are among the businesses owned by an
organization. [Show Less]