Diversification ought to be considered when:
A) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
B) a company lacks sustainable competitive advantage in its present business.
C) a company begins to encounter diminishing market growth and stagnating sales prospects in its mainstay business.
D) a company has run out of ways to achieve a distinctive competence in its present business.
E) a company is under the gun to create a more attractive and cost-efficient value chain.
Correct Answer:
Verified
Q2: The three tests for judging whether a
Q7: To create value for shareholders via diversification,
Q8: Establishing investment priorities and steering corporate resources
Q10: Diversification becomes a relevant strategic option in
Q14: Creating added value for shareholders via diversification
Q15: Diversification merits strong consideration whenever a single-business
Q16: In terms of strategy making,what is the
Q17: Which one of the following is NOT
Q18: The decision to pursue diversification requires management
Q18: To take advantage of cross-business value chain
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