Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification?
A) The company must achieve coordination between business units.
B) The company has narrow organizational competencies.
C) The company has superior strategic management and organizational design.
D) The company has no bureaucratic costs that arise from the number of businesses in its portfolio.
E) The company has no difficulty in keeping its corporate managers informed about the complexities of each business.

Question

Quizplus · Accepted Answer

Unrelated diversification involves a company expanding into industries that are not related to its current industry or markets. This strategy may require superior strategic management and organizational design to manage the diverse businesses effectively, as it does not rely on the synergies between related business units that a related diversification strategy would.

Which of the Following May Be True for a Company