A Company That Enters a New Business Area in Order

question 90

Multiple Choice

A company that enters a new business area in order to leverage existing expertise and achieve synergy across the newly combined set of products is following a ________ strategy.

• A)related diversification
• B)international expansion
• C)focused low-cost
• D)concentration on a single industry
• E)unrelated diversification

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Definitions:

Cues

External or internal signals that guide behavior or trigger emotional or physiological responses.

Internal Causes

Factors within a person, such as personal traits or motivations, that influence behavior.

Fundamental Attribution Error

The tendency to make attributions to internal causes when focusing on someone else’s behavior.

Behavior

The action or reaction of an entity (usually a person), in response to external or internal stimuli.