When a Company Decides to Expand into New Industries, It

question 43

Multiple Choice

When a company decides to expand into new industries, it must:

• A) develop "multibusiness model" that justifies its entry into different businesses.
• B) halt marketing activities in the current industry to avoid being associated with one specific industry.
• C) select a new CEO and reappoint the board of directors.
• D) create one common business model for all the industries rather than each business unit.
• E) avoid talking about ways of increasing profitability in the business model.

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Definitions:

Flapping Wings

The movement of wings up and down, characteristic of birds, bats, and some insects, allowing for flight or balance.

Flashing Light

A light that blinks on and off to attract attention or convey a message, commonly used in signaling, warning, or decorative devices.

Observational Learning

The process of watching how others behave and learning from their example.

Insight Learning

A form of problem-solving where the solution comes suddenly and unexpectedly after a period of contemplation, seeing the problem in a new way.