A Company Can Best Accomplish Diversification into New Industries by

question 36

Multiple Choice

A company can best accomplish diversification into new industries by

• A)outsourcing most of the value chain activities that have to be performed in the target business/industry.
• B)acquiring a company already operating in the target industry, creating a new business from scratch, or forming a joint venture with one or more companies to enter the target industry.
• C)integrating forward or backward into the target industry.
• D)shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
• E)employing an offensive strategy with new product innovation as its centerpiece.

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Definitions:

Male Chauvinists

Individuals, usually men, who believe in the superiority of men over women in various aspects of life.

Equal Status

The condition that occurs when companies hire employees who are frequent targets of discrimination into all levels within the company.

Ingredients

are the components or materials used in the preparation of foods, medicines, or any product requiring a mixture.

Discrimination

The unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.