The leadership of apparel maker Liz Claiborne made a number of acquisitions which increased the size of the company from $800 million to $5 billion. The number of brands Claiborne controlled more than doubled, from 16 to 36. However, the acquisitions left Claiborne in a less attractive position, with retailers unwilling to be heavily reliant on one supplier. This situation was the result of
A) Claiborne managers focusing too much on acquisitions at the expense of managing their existing businesses.
B) key managers leaving from the acquired firms which left the firms with inferior management talent.
C) the firm becoming too vertically integrated.
D) the firm becoming too large.

Question

Quizplus · Accepted Answer

The focus on acquisitions likely diverted attention from effectively managing existing operations, leading to a less favorable position with retailers.

The Leadership of Apparel Maker Liz Claiborne Made a Number