What Is the Primary Disadvantage of Employing a Product Specialization

question 182

Multiple Choice

What is the primary disadvantage of employing a product specialization strategy?

• A)The organization may be spread too thin.
• B)The organization achieves neither marketing nor manufacturing synergies.
• C)R&D-manufacturing has the difficulty of producing multiple new lines.
• D)There are too many product substitutes over which a firm would not have control.
• E)Gaining market distribution will be costly.

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Definitions:

Franchise Arrangement

A legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.

Wind Up

Wind Up is the process of concluding the affairs of a business or partnership, including paying off debts and distributing remaining assets to stakeholders.

Termination Notice

A formal declaration, either oral or written, that signifies the end of an agreement or employment.

Day-to-Day Operations

These are the routine activities that a business or organization conducts on a regular basis to ensure its smooth and ongoing functioning.