Creating value within business units

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Reference no: EM131642726

1. McKesson, a large distribution company, sells many product lines such as pharmaceuticals and liquor through its super warehouses. This is an example of ____________.

a. using related diversification to achieve value by sharing activities to create economies of scope

b. using related diversification to achieve value by leveraging core competencies to create market power

c. using unrelated diversification to create value by managing its portfolio to create financial synergies

d. using unrelated diversification to create value by managing its portfolio to create restructuring advantages

2. Creating value within business units can happen when the corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. This is known as ________.

a. restructuring

b. parenting

c. leveraging core competencies

d. increasing market power

Reference no: EM131642726

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