When a company is generating financial resources in excess of the amount needed to maintain a competitive advantage in its core business, it will most likely pursue

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When a company has excess financial resources and wants to use it to expand beyond its core business, it will most likely pursue diversification. Diversification allows the company to enter new markets, introduce new products or services, and reduce risks associated with being solely dependent on one core business. Taper integration, full integration, strategic alliances, and long-term contracts are all strategies to improve a company's competitive advantage within its core business, but they do not necessarily involve diversification.

When a Company Is Generating Financial Resources in Excess of the Amount