The purpose of __________ is to expand the firm's business operations to produce new kinds of valuable products and services.
A) retrenchment
B) diversification
C) differentiation
D) cost leadership
E) internal growth

Question

Quizplus · Accepted Answer

Diversification is the strategy of expanding a firm's business operations through entering new markets and producing new kinds of products and services. It is aimed at creating more revenue streams, reducing dependency on one or a few products, and achieving long-term growth. Retrenchment is a strategy of cutting back or restructuring the business to focus on core products or markets. Differentiation and cost leadership are competitive strategies that focus on creating unique and valuable products or providing products at a low cost. Internal growth refers to expanding the business by investing in its current products or markets, rather than entering new ones.

The Purpose of __________ Is to Expand the Firm's Business