The decision to pursue diversification requires management to resolve which industries to enter and whether to enter, and includes such decisions as the following, EXCEPT
A) selecting the appropriate value chain operating practices to improve the financial outlook.
B) starting a business from the ground up.
C) acquiring a company already established in the target industry.
D) forming a joint venture or partnership with another company.
E) structuring a strategic alliance with another company to take advantage of the opportunity.

Question

Quizplus · Accepted Answer

Selecting the appropriate value chain operating practices to improve the financial outlook is a part of entering a new industry, but it is not a decision that needs to be resolved in the pursuit of diversification. The other options listed (starting a business from the ground up, acquiring a company already established in the target industry, forming a joint venture or partnership with another company, and structuring a strategic alliance with another company) are all potential strategies for pursuing diversification.

The Decision to Pursue Diversification Requires Management to Resolve Which