Shortly after the start of the new century,Wrigley,the largest chewing gum manufacturer in the world,bid $12 billion for Hershey chocolate.Wrigley was unable to acquire Hershey,but its acquisition attempt would have expanded Wrigley's product lines to include many forms of baking and eating chocolate.Since Wrigley did not produce any chocolate at the time of the takeover bid,this acquisition would an example of:
A) divestment
B) segment development
C) target marketing
D) diversification
E) directed growth

Question

Quizplus · Accepted Answer

The acquisition attempt by Wrigley to acquire Hershey represents diversification. Diversification is the strategy of entering new markets and creating new products that are not related to the existing business. In this case, since Wrigley did not produce any chocolate, the acquisition of Hershey would have expanded Wrigley’s product lines to include baking and eating chocolate, thereby diversifying the company’s offerings.

Shortly After the Start of the New Century,Wrigley,the Largest Chewing