What strategic reason might prompt an organization in one industry to acquire a firm in a completely different industry?
A)To increase environmental uncertainty
B)To reduce resource dependence
C)To obtain a flatter structure
D)To reduce differentiation
E)To reduce competition

Question

Quizplus · Accepted Answer

Acquiring a firm in a completely different industry can help an organization reduce its dependence on the resources of its original industry by diversifying its resource base, thereby reducing risks associated with industry-specific downturns or resource shortages.

What Strategic Reason Might Prompt an Organization in One Industry