What makes related diversification an attractive strategy is the
A) ability to broaden the company's product line.
B) opportunity to convert the competitive advantage potential into 1 + 1 = 3 gains in shareholder value.
C) potential for improving the stability of the company's financial performance.
D) ability to serve a broader spectrum of buyer needs.
E) added capability it provides in overcoming the barriers to entering foreign markets.
Correct Answer:
Verified
Q10: Diversification ought to be considered when a
A)company's
Q18: Diversifying into new businesses can be considered
Q19: Which one of the following is not
Q21: A strategy of diversifying into unrelated businesses
A)
Q22: What rationales for unrelated diversification are not
Q23: Opportunities for cross-business strategic fit exist
A)in R&D
Q24: One strategic fit-based approach to related diversification
Q26: The basic premise of unrelated diversification is
Q37: When evaluating strategic fit benefits that related
Q39: Different businesses are said to be unrelated
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