Evaluating the Strategy of a Diversified Company


The procedure for evaluating a diversified company’s strategy and deciding how to improve the company’s performance involves six steps:

a.   Evaluating industry attractiveness

b.   Evaluating business-unit competitive strength

c.   Checking the competitive advantage potential of cross-business strategic fits

d.   Checking for resources fit

e.   Ranking the business units on the basis of performance and priority for resource allocation

f.    Crafting new strategic moves to improve overall corporate performance

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