Oracle has been diversifying in the software industry through acquisition of firms such as PeopleSoft as described in the Strategic Focus. There are very close linkages between Oracle and the various units and for the strategy to work, Oracle must develop mechanisms to share activities. Oracle is clearly following a _____________________diversification strategy.
A) related constrained
B) unrelated
C) related linked
D) dominant business

Question

Quizplus · Accepted Answer

In related linked diversification, a company creates linkages between different business units through shared activities such as marketing, production, and distribution. Oracle's acquisition of firms in the software industry, such as PeopleSoft, reflects a related linked diversification strategy because they are all connected to Oracle's core business of providing software solutions. To make the strategy work, Oracle needs to develop mechanisms to share activities between these units.

Oracle Has Been Diversifying in the Software Industry Through Acquisition