Which of the Following Statements Represents Related-Constrained Diversification

question 51

Multiple Choice

Which of the following statements represents related-constrained diversification?

• A)A firm earning more than 95 percent of the revenues from a single line of business
• B)A firm that earns more than 70 percent of its revenue from its main line of business and the rest from businesses located along the value chain
• C)A firm that earns less than 70 percent of its revenue from its main line of business and whose other lines of business share product, technological, and distribution linkages with the main business
• D)A firm that earns more than 70 percent of its revenue from its main line of business and the remainder from other lines across different value chains

Recognize the implications of transportation choices on global trade and logistics.

Analyze the consequences of infrastructure development on a country's global trade capabilities.

Appreciate the role of raw materials in the manufacturing process and international trade.

Compare the impact of different communication and transportation technologies on international business.

---

Definitions:

On-time Deliveries

The performance metric that measures the percentage of orders delivered to the customer within the agreed-upon delivery time.

Organizational Architecture

The structure of an organization. Consists of the assignment of decision rights within the organization, the methods of rewarding individuals, and the systems to evaluate the performance of both individuals and business units.

Product Redesign

The process of changing or updating a product’s features, performance, or aesthetics to meet new market demands or improve efficiency.

Just-In-Time

A production strategy aimed at reducing times within the production system as well as response times from suppliers and to customers.