A Strategy Based on Diversification May Fail to Add Value

question 52

Multiple Choice

A strategy based on diversification may fail to add value because companies:

• A) seek to achieve differentiation instead of low cost.
• B) diversify into areas in which they have some knowledge and miss out on profitable opportunities in other areas.
• C) make acquisitions rather than develop new technologies on their own.
• D) incur bureaucratic costs that exceed the value created by the strategy.
• E) seek to achieve a low-cost position instead of differentiation.

---

Definitions:

Simple Vocabulary

The use of clear, straightforward, and easy-to-understand words in speaking or writing.

Translations

Translations involve converting text or speech from one language to another, maintaining the original meaning.

Lasting Impression

The enduring effect or memory that remains after something or someone has been seen, experienced, or encountered.

Annual Conference

A yearly event that brings together professionals and experts from a specific field or industry to share knowledge, network, and discuss recent trends and research.