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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