Diversification becomes a relevant strategic option when a company does all of the following EXCEPT for when it:
A) spots opportunities to expand into industries whose technologies and products complement its present business.
B) leverages existing resources and capabilities by expanding into industries where these same resource strengths are key success factors and valuable competitive assets.
C) has a powerful and well-known brand name that can be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.
D) can open up new avenues for reducing costs by diversifying into closely related businesses.
E) expands into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
Correct Answer:
Verified
Q1: Initiating actions to boost the combined performance
Q2: A company can best accomplish diversification into
Q2: The three tests for judging whether a
Q3: The better-off test for evaluating whether a
Q5: The cost-of-entry test for evaluating whether diversification
Q7: Diversifying into new businesses is justifiable only
Q7: To create value for shareholders via diversification,
Q8: Establishing investment priorities and steering corporate resources
Q10: Diversification becomes a relevant strategic option in
Q18: To test whether a particular diversification move
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