Diversification ought to be considered when a
A) company's profits are being squeezed,and it needs to increase its net profit margins and return on investment.
B) company lacks sustainable competitive advantage in its present business.
C) company begins to encounter diminishing growth prospects in its mainstay business.
D) company has run out of ways to achieve a distinctive competence in its present business.
E) company is under the gun to create a more attractive and cost-efficient value chain.
Correct Answer:
Verified
Q5: The attractiveness test for evaluating whether diversification
Q6: The three tests for judging whether a
Q7: Diversification merits strong consideration whenever a single-business
Q9: Diversification into a new industry cannot be
Q11: Acquisition of an existing business is an
Q12: The cost-of-entry test for evaluating whether diversification
Q13: A joint venture is an attractive way
Q14: The better-off test for evaluating whether a
Q15: Apple Inc.'s decision to acquire Beats Electronics
Q18: Diversifying into new businesses can be considered
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