Shawarma Rocket (Scenario)
Imagine that you are the president of Shawarma Rocket, a new and successful chain of 100 Lebanese fast- food restaurants. The success you have experienced in the last five years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants?
-You decide to purchase a local five- store hardware chain because it was a good investment. This is an example of _________.

Question

Quizplus · Accepted Answer

This is an example of unrelated diversification as the hardware chain is not related to the shawarma restaurant business. There is no synergy between the two businesses and they operate in different industries. The purchase of the hardware chain is a way for the company to diversify its portfolio and spread its business risk. However, this move requires careful consideration and analysis to ensure the profitability and success of the venture. It is important to assess the potential challenges and opportunities of entering a new and unfamiliar market.

Shawarma Rocket (Scenario) Imagine That You Are the President of Shawarma Rocket, a Shawarma