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 has to 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 complexitities of each business.

Question

Quizplus · Accepted Answer

A company pursuing unrelated diversification may have superior strategic management and organizational design to manage a diverse portfolio of businesses effectively, as it does not rely on synergies between business units.

Which of the Following May Be True for a Company