Which of the Following May Be True for a Company

question 2

Multiple Choice

Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification?

• A) The company must achieve coordination between business units.
• B) The company has narrow organizational competencies.
• C) The company has superior strategic management and organizational design.
• D) The company has no bureaucratic costs that arise from the number of businesses in its portfolio.
• E) The company has no difficulty in keeping its corporate managers informed about the complexities of each business.

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Definitions:

First-Mover Advantage

The competitive edge that a company gains by being the first to market with a product or service.

Extensive Form

A representation of a game that displays the sequence of choices available to players and the outcomes achieved from these choices.

Sequential Game

A type of game in game theory where players make decisions or take actions in turn, with each player's decision influencing the next player's set of available choices.

Economic Profits

The net amount left when a business subtracts its full range of costs, explicit and implicit, from its entire revenue.