Procter & Gamble (P&G) has a paper towel and baby diaper business, both of which use paper products. The firm's paper production plant produces inputs for both businesses. P&G most likely uses the _____________ diversification strategy to create ___________.
A) related constrained; operational relatedness
B) related linked; corporate relatedness
C) related constrained; corporate relatedness
D) related linked; operational relatedness

Question

Quizplus · Accepted Answer

P&G uses a related constrained diversification strategy because both businesses share resources, such as paper products, creating operational relatedness through shared production processes.

Procter & Gamble (P&G) Has a Paper Towel and Baby