A company can best accomplish diversification into new industries by:
A) outsourcing most of the value chain activities that have to be performed in the target business/industry.
B) acquiring a company already operating in the target industry,creating a new business subsidiary to compete in the target industry,or forming a joint venture with another company to enter the target industry.
C) integrating forward or backward into the target industry.
D) shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
E) employing an offensive strategy with new product innovation as its centerpiece.
Correct Answer:
Verified
Q1: Initiating actions to boost the combined performance
Q2: The three tests for judging whether a
Q3: The better-off test for evaluating whether a
Q4: Diversification becomes a relevant strategic option when
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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