Hi, I have a question and I hope anyone could answer it:
A) the difficulties of passing the cost-of-entry test and the ease with which top managers can make the mistake of diversifying into businesses where competition is too intense.
B) the difficulties of capturing financial fit and having insufficient financial resources to spread business risk across many different lines of business.
C) demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
D) Ending up with too many cash hog businesses and too much diversity among the competitive strategies of the businesses it has diversified into.
E) the difficulties of achieving economies of scope and conflicts/incompatibility among the competitive strategies of the company’s different businesses.
C. the demanding managerial requirements and the limited competitive advantage potential due to lack of cross-business strategic fit benefits.