Which of the Following Is NOT a Result of Overdiversification

question 2

Multiple Choice

Which of the following is NOT a result of overdiversification?

• A) Executives do not have a rich understanding of all of the firm's business units.
• B) Managers emphasize strategic controls rather than financial controls.
• C) Firms use acquisition as a substitute for innovation.
• D) Managers become short-term in their orientation.

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Definitions:

Product Development Strategy

A company's plan for the design, creation, and marketing of new products, emphasizing innovation and market fit.

New Products

Items or services introduced to the market for the first time, aiming to meet consumer demand or open new market opportunities.

Intraoperation Scope

The range or extent of activities and processes conducted within a single operation or phase of production or service delivery.

Supply Chain Surplus

The total value created by the supply chain, computed as the difference between the value of the final product to the consumer and the costs of the supply chain activities.