Which of the following is true of diversification?
A) It is a substrategy of the retrenchment strategy.
B) Concentric diversification is diversification into unrelated areas.
C) It should be adopted by an organization facing major environmental threats with strong internal resources.
D) It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices.
E) An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

Question

Quizplus · Accepted Answer

Diversification should be adopted by an organization facing major environmental threats with strong internal resources, as it allows the organization to spread risk across different products or markets.

Which of the Following Is True of Diversification