McDonalds is globally recognized as a restaurant chain offering a consistent experience and similar foods. Which of the following most likely indicates that McDonalds is following a diversification strategy?
A) McDonalds increases its spending on advertising and promotion.
B) McDonalds develops a new line of pizzas targeting its current market to be sold from its existing locations.
C) McDonalds acquires another chain of fast-food restaurants.
D) McDonalds opens a restaurant in the previously untapped Bora-Bora.
E) McDonalds enters the U.S. market with a line of children's clothing.

Question

Quizplus · Accepted Answer

Diversification involves entering a new market with a new product. Entering the U.S. market with a line of children's clothing represents diversification as it is a new product in a new market for McDonalds.

McDonalds Is Globally Recognized as a Restaurant Chain Offering a Consistent