What Strategic Reason Might Prompt an Organization in One Industry

question 21

Multiple Choice

What strategic reason might prompt an organization in one industry to acquire a firm in a completely different industry?

• A)To increase environmental uncertainty
• B)To reduce resource dependence
• C)To obtain a flatter structure
• D)To reduce differentiation
• E)To reduce competition

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Definitions:

Natural Cement

A type of material formed when certain natural rocks with hydraulic properties are finely ground and then mixed with water, initiating chemical reactions that result in a hardened substance.

Porosity

The measure of void spaces in a material, such as rock or soil, often expressed as a percentage of the total volume.

Natural Cement

Material formed when certain minerals dissolve in water and then precipitate, binding sediment grains together into a solid mass.

Fractures

Breaks or cracks in rock caused by physical stress, often resulting in significant geological structures.