The leadership of apparel maker Liz Claiborne acquired a number of firms in sportswear apparel growing from 16 to 36 brands. While its managers were focused on making acquisitions, industry consolidation was taking place, leaving less room for so many brands. Additionally, competitors were gaining favor with customers leaving fewer sales for Claiborne products. 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 given information suggests that Claiborne's managers were focused on making acquisitions and didn't manage their existing businesses properly. As a result, the industry consolidation and competitors' growth left fewer sales for Claiborne products. Therefore, the situation was the result of Claiborne managers focusing too much on acquisitions at the expense of managing their existing businesses.

The Leadership of Apparel Maker Liz Claiborne Acquired a Number