A firm pursuing a related-constrained diversification strategy would typically need all of the following EXCEPT:
A) centralization between units for the sake of coordination.
B) liaison roles.
C) decentralization between units to generate creativity.
D) temporary teams or task forces formed around specific projects.

Question

Quizplus · Accepted Answer

Related-constrained diversification strategy involves diversification into businesses that share resources or capabilities, but may not be directly related to the firm's core business. This strategy requires centralization between units for coordination and liaison roles to facilitate communication between units. Temporary teams or task forces are also formed around specific projects. However, decentralization between units is not necessary for this strategy as it may lead to a lack of coordination and integration. Therefore, option C is not needed for a firm pursuing a related-constrained diversification strategy.

A Firm Pursuing a Related-Constrained Diversification Strategy Would Typically Need