Scenario C. Use the information given below to answer the following questions. Shine cosmetics, a global company, is considering its corporate strategy. Several people on the board of directors believe they have the "perfect" strategy for the company. Joe believes that the best option is to continue their present strategy of offering cosmetics to customers who like the "look" of the products. Martin wants the company to expand by purchasing the manufacturing plants that produce Shine products. Cathy wants to add products like skin care and perfume to the product line. Ruth wants to develop the company by opening restaurants or setting up an amusement park.
-Which of the following corporate strategies does Cathy advocate?
A) Concentration
B) Vertical integration
C) Related diversification
D) Unrelated diversification
E) Price skimming

Question

Quizplus · Accepted Answer

Related diversification is a strategy used to add new businesses that produce related products or are involved in related markets and activities.