TL & Co Is Following a Related-Linked Diversification Strategy, and Soar Inc

question 24

Multiple Choice

TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-constrained diversification strategy. How do the two firms differ from each other?

• A) Soar Inc. generates 70 percent of its revenues from its primary business, while TL & Co. generates only 10 percent of its revenues from its primary business.
• B) Soar Inc. pursues a backward diversification strategy, while TL & Co. pursues a forward diversification strategy.
• C) TL & Co. will share fewer common competencies and resources between its various businesses when compared to Soar Inc.
• D) TL & Co. pursues a differentiation strategy, and Soar Inc. pursues a cost-leadership strategy, to gain a competitive advantage.

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Definitions:

Economic Burden

The total financial cost, direct and indirect, associated with a particular condition or policy to society or an economy.

Postindustrial Period

characterizes the phase in societal development following the peak of industrialization, often marked by a shift towards service-oriented and information-based economies.

Replacement Level

A term used in demography indicating the number of children each woman needs to have to ensure the population size remains constant, typically calculated as slightly over two children per woman.

Fertility Levels

The mean number of offspring a woman has during her life in a certain group of people.