Firms that have selected a related diversification corporate-level strategy seek to exploit:
A)control shared among business-unit managers
B)market power
C)the favourable demands of buyers
D)economies of scope between business units

Question

Quizplus · Accepted Answer

Related diversification strategy is aimed at exploiting economies of scope between business units. This means that by having related businesses under one corporate umbrella, the firm can take advantage of synergies, sharing of resources, and cost savings to achieve greater efficiency and profitability. The other options (A, B, and C) may also be benefits of a related diversification strategy, but they are not the primary objective.

Firms That Have Selected a Related Diversification Corporate-Level Strategy Seek