BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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related-linked diversification.
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cost-leadership.
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unrelated diversification.
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hostile takeovers.
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Detailed explanation-1: -Disney became the world’s leading media company to a large extent by pursuing a corporate strategy of related-linked diversification. This is because some, but not all, of Disney’s business activities share some common resources, capabilities, and competencies.
Detailed explanation-2: -The Walt Disney Company (Disney) utilizes a related diversification strategy. Related diversification “involves diversifying into businesses whose value chains possess competitively valuable ‘strategic fits’ with value chain(s) of [a] firm’s present business(es)” (Geiger, 2004).
Detailed explanation-3: -The Sales Alliance involves both the Disney and Pixar companies working together to maximize the profits from their products.
Detailed explanation-4: -Which of the following best explains why Disney showed superior post-merger integration capabilities? Disney managed its new subsidiaries more like alliances rather than attempting full integration.