What makes related diversification an attractive strategy is
A) the ability to broaden the company's product line.
B) the opportunity to convert the competitive advantage potential into 1 + 1 = 3 gains in shareholder value.
C) the potential for improving the stability of the company's financial performance.
D) the ability to serve a broader spectrum of buyer needs.
E) the added capability it provides in overcoming the barriers to entering foreign markets.
Correct Answer:
Verified
Q21: A strategy of diversifying into unrelated businesses
A)
Q24: One strategic fit-based approach to related diversification
Q25: When evaluating strategic fit benefits that related
Q26: The two biggest drawbacks or disadvantages of
Q27: Which of the following is not one
Q31: Which of the following is a diversified
Q32: A diversified company that leverages the strategic
Q33: Economies of scope
A)are cost reductions that flow
Q35: The best place to look for cross-business
Q51: The basic premise of unrelated diversification is
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