What to Do?
Imagine that you are the CEO of McDonald's Family Restaurants (Australia)with hundreds of franchised fast-food outlets throughout Australia.The success you have experienced in the last five years has you thinking of what to do next with the business.Should you expand the business at the current rate? Open new and different restaurants? What would be your next step?
-Refer to What to Do? (Scenario).If you were considering the purchase of another franchise fast-food chain like Red Rooster, this would be an example of ________.

Question

Quizplus · Accepted Answer

This is an example of related diversification because Red Rooster is also a fast-food chain, so it is related to McDonald's business. Lateral growth strategy refers to expanding within the same industry, but not necessarily through acquiring another company. Combination purchase is not a commonly used term in business strategy. Unrelated diversification refers to entering a completely different industry, which is not the case with the potential acquisition of Red Rooster. Vertical growth strategy involves expanding within the supply chain or distribution channels.

What to Do? Imagine That You Are the CEO of McDonald's Family Restaurants