A diversification corporate strategy implies that a firm will ________.
A) become an industry's low-cost leader
B) expand by adding new product lines
C) save money by producing its own raw materials
D) reduce the company's size to increase market share

Question

Quizplus · Accepted Answer

A diversification corporate strategy suggests that a firm will expand by adding new product lines. For example, PepsiCo has diversified over the years by adding chips and Quaker Oats to its product offerings. Consolidation refers to reducing a firm's size, while concentration implies that a firm will offer one product or product line.

A Diversification Corporate Strategy Implies That a Firm Will ________