A poorly-performing SBU in a firm using the unrelated-diversification multiproduct strategy is liable to be disciplined by being allocated fewer resources.

Question

Quizplus · Accepted Answer

In the unrelated-diversification multiproduct strategy, SBUs are evaluated individually and assigned resources based on their performance. A poorly-performing SBU is likely to receive fewer resources as a form of discipline, while a well-performing SBU may receive more resources to further strengthen its position.

A Poorly-Performing SBU in a Firm Using the Unrelated-Diversification Multiproduct