The Distinguishing Factor Between Unrelated and Related Diversification Strategies Is

question 6

Multiple Choice

 The distinguishing factor between unrelated and related diversification strategies is that a firm using unrelated diversification strategy

• A) has numerous businesses that are linked in some manner.
• B) manages several businesses with no reasonable connection.
• C) focuses on one specific product, typically in one market.
• D) develops core competencies using its resources and capabilities.

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Definitions:

Maximizing

The strategy of seeking the best possible outcome or the highest possible utility when making a decision.

Availability Heuristic

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid examples.

Satisficing

A decision-making strategy that entails selecting the first option that meets a minimum set of criteria, rather than optimizing.

Heuristic

Cognitive shortcuts or rules of thumb that simplify decision making, often at the expense of accuracy or completeness.