Barbara Rentler, CEO of Ross Stores, Inc. (parent company of Ross Dress for Less and dd's Discount retail chains) is considering broadening her company's business scope, by building positions in new related or unrelated businesses. Ms. Rentler would be advised to pursue a diversification strategy for all of the following reasons except
A) Ross has resources or capabilities that are eminently transferable to other related or complementary businesses.
B) Ross's growth is sluggish and it wants the sales and profit boost that a new business can provide.
C) Ross's management wants to lessen the company's vulnerability to seasonal or recessionary influences or to threats from emerging new technologies, legislative regulations, and new product innovations that alter buyer preferences and resource requirements.
D) Ross wants to make new acquisitions to strengthen or complement some of its present businesses, market positioning, and competitive capabilities.
E) Ross's top management wants to increase its compensation.
Correct Answer:
Verified
Q82: The tests of whether a diversified company's
Q83: The options for allocating a diversified company's
Q84: Corporate restructuring strategies
A)involve making major changes in
Q85: Moves to improve a diversified company's overall
Q86: Imagine that you have been hired by
Q88: Once a company has diversified into a
Q89: Conditions that may make corporate restructuring strategies
Q90: Deploying a diversified company's financial resources would
Q91: The strategic options to improve a diversified
Q92: PepsiCo divested its group of fast-food restaurant
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents