Business, 03.12.2021 19:10 SpiritedAway7087

An acquisition of an unrelated business is deemed to have potential a. if it is aimed at achieving good financial fit (whereas related diversification aims at good strategic fit).
b. if it can achieve at least existing profit margins into the near future.
c. if it passes the competitive fit, financial fit, strategic relatedness, and value chain maximization tests
d. if it has the opportunity to generate positive buzz in the industry, even if it may not be able to contribute to the parent firm's bottom line.
e. if it can pass the industry attractiveness and cost-of-entry test, and if it has good prospects for profit growth.

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An acquisition of an unrelated business is deemed to have potential a. if it is aimed at achieving...

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