Which Strategy Would Be Most Appropriate When the Distinctive Competencies

question 47

Multiple Choice

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

• A) Conglomerate diversification
• B) Divestiture
• C) Joint venture
• D) Retrenchment
• E) Integration

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Definitions:

Standard Cost

A predetermined cost of manufacturing, serving, or marketing an item, which includes direct labor, direct material, and overhead charges.

Industry Average

A benchmark or norm for a specific industry, calculated as the average of a significant metric (like return on investment) across similar companies.

Standard Costs

Predetermined costs of manufacturing, overhead, material, and labor that are used as benchmarks to measure performance against actual costs.

Clerical Costs

Expenses associated with administrative tasks and office support activities within an organization.