Which of the following actions would best illustrate a diversification strategy for McDonald's (the fast food restaurant)
A)adding a line of new deli sandwiches to the menu of existing McDonald's stores
B)running a promotion based on the Monopoly game, whereby customers have a chance to win prizes with each purchase
C)opening the first McDonald's in China
D)developing a line of McDonald's toys to be sold through Toys R Us stores

Question

Quizplus · Accepted Answer

Diversification involves entering into a new market or industry that the company is not currently in. Developing a line of McDonald's toys to be sold through Toys R Us stores represents entering a new product line and market outside of their traditional fast-food business.

Which of the Following Actions Would Best Illustrate a Diversification