Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles, shares manufacturing operations across its businesses. It also has a corporate research and development facility and staff departments that support all of the Polaris operating divisions. This is an example of using
A)related diversification to acquire market value by leveraging core competencies.
B)related diversification to acquire economies of scope by sharing.
C)unrelated diversification to acquire financial synergies through portfolio management.
D)related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting.

Question

Quizplus · Accepted Answer

In this case, Polaris uses related diversification to create value by sharing activities in order to create economies of scope.

Polaris, a Manufacturer of Snowmobiles, Motorcycles, Watercraft, and Off-Road Vehicles