"Strategic relatedness" (as distinct from "operational relatedness")in diversification refers to:
A)The ability to use very different marketing strategies that fit with different countries
B)The ability to sell similar products
C)The ability to apply similar strategies,resource allocation procedures,and control systems across the businesses
D)The ability to maximize the allocation of financial resources across the businesses

Question

Quizplus · Accepted Answer

Strategic relatedness in diversification refers to the ability to apply similar strategies, resource allocation procedures, and control systems across the businesses. This means that the different businesses under the same corporate umbrella can share knowledge, resources, and capabilities to create synergies and competitiveness. Operational relatedness, on the other hand, refers to the ability to use common inputs, processes, or technologies across different businesses. Selling similar products (B) or maximizing the allocation of financial resources (D) may or may not be related to strategic relatedness depending on whether they contribute to the creation of synergies and value. The ability to use different marketing strategies (A) is not related to strategic relatedness, but rather to the adaptation of the marketing mix to different market conditions.

"Strategic Relatedness" (As Distinct from "Operational Relatedness")in Diversification Refers To