When a company decides to expand into new industries, it must:
A)develop "multibusiness model" that justifies its entry into different businesses.
B)halt marketing activities in the current industry to avoid being associated with one specific industry.
C)select a new CEO and reappoint the board of directors.
D)create one common business model for all the industries rather than each business unit.
E)avoid talking about ways of increasing profitability in the business model.

Question

When a company decides to expand into new industries, it must:
A)develop "multibusiness model" that justifies its entry into different businesses.
B)halt marketing activities in the current industry to avoid being associated with one specific industry.
C)select a new CEO and reappoint the board of directors.
D)create one common business model for all the industries rather than each business unit. 
E)avoid talking about ways of increasing profitability in the business model.

Quizplus · Accepted Answer

Developing a "multibusiness model" is essential for justifying a company's entry into different industries. It explains how the company's resources, capabilities, and expertise can be leveraged to create value in these new industries. It helps to ensure that the company's expansion is strategic and financially viable.

When a Company Decides to Expand into New Industries, It