When McDonald's introduced the McCafe, it began offering a new product that was not available in traditional McDonald's stores.The introduction of the McCafe is an example of which of the following?
A)Transferring competencies
B)Diversification
C)Commonality
D)Economies of scope
E)Bureaucratic costs

Question

When McDonald's introduced the McCafe, it began offering a new product that was not available in traditional McDonald's stores.The introduction of the McCafe is an example of which of the following?
A)Transferring competencies
B)Diversification
C)Commonality
D)Economies of scope 
E)Bureaucratic costs

Quizplus · Accepted Answer

Diversification refers to entering into a new market or offering a new product that is different from the company's traditional offerings. McDonald's introducing the McCafe is an example of diversification as it offers a new product that was not previously available in traditional McDonald's stores.

When McDonald's Introduced the McCafe, It Began Offering a New