McKesson,a large distribution company,sells many product lines such as pharmaceuticals and liquor through its super warehouses.This is an example of ____________.
A) using related diversification to achieve value by sharing activities to create economies of scope
B) using related diversification to achieve value by leveraging core competencies to create market power
C) using unrelated diversification to create value by managing its portfolio to create financial synergies
D) using unrelated diversification to create value by managing its portfolio to create restructuring advantages

Question

Quizplus · Accepted Answer

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

McKesson,a Large Distribution Company,sells Many Product Lines Such as Pharmaceuticals