Which Two of the Following Are Reasons Why Related Diversification

question 2

Multiple Choice

Which two of the following are reasons why related diversification may be problematic?

• A) There are significant corporate- level time and cost implications.
• B) There may be significant synergy benefits from links between the various business units.
• C) Business- unit complexity may mean that business unit managers are unable to focus on their own business- unit needs.
• D) It may enable the parent to exploit dominant logics.

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Definitions:

Group-Level Indices

Measures or indicators used to assess characteristics or outcomes of a group as a whole, rather than focusing on individual members.

Individual-Level Indices

Measures used to assess characteristics or outcomes on an individual basis, rather than group or collective levels.

Sherif's Study

Refers to the social psychology experiments conducted by Muzafer Sherif, particularly known for demonstrating the formation of social norms and group dynamics through the Robbers Cave Experiment.

Pressure of the Group

The social influence exerted by a collective on individual members to conform to the group's norms, values, and behaviors.