Weight 40 Investigate

1. Wordcount: at least 2,000 words – references are excluded from the wordcount;

2. Please submit ONLY word documents. PDFs or any kind of photo documents will not be marked;

3. Please do not plagiarise: any similarity index above 20% will be referred to the Ethics Committee;

4. Prose is highly recommended as opposed to any metrical structure of text;

5. Please title your answers, for example: Answer to Question 1 or Answer to Question 2;

6. If you need extra time, please apply for Extenuating Circumstances;

7. Deadline: saturday 2th of April by 23:59 GMT/UTC

Based on the case study: ‘Fiat: The Value of a Spinoff’

Answer all three questions.

Q1. (Weight 40%)

Investigate Fiat Group’s different options for splitting up its constituent companies in order to enable the market to assess the performance of its two main businesses (Capital Goods and Automobiles) on an individual basis.

Q2. (Weight 30%)

Critically reflect on the pros and cons of the diversification strategies.

Q3. (Weight 30%)

Comment on all possible reasons explaining the diversification discount.