A strategy of ________ will be most beneficial for a firm to enhance its overall corporate performance.
A) unrelated level of diversification
B) single-business level of diversification
C) dominant-business level of diversification
D) related-linked diversification

Question

Quizplus · Accepted Answer

A strategy of related-constrained or related-linked diversification is more likely to enhance corporate performance than either a single or dominant level of diversification or an unrelated level of diversification. The reason is that the sources of value creation include not only restructuring, but more fundamentally, the potential benefits of economies of scope and scale.

A Strategy of ________ Will Be Most Beneficial for a Firm