Related Corporate Diversification Does Not Necessarily Provide Opportunities

question 61

Multiple Choice

Related corporate diversification does not necessarily provide opportunities

• A)for transferring expertise, technology, and other capabilities from one business to another.
• B)for reducing costs on advertising by leveraging use of a competitively powerful brand name.
• C)to exploit a first-mover strategy and capture valuable financial fits.
• D)for cross-business collaboration to create valuable new competencies and capabilities.
• E)to share other resources (besides brands)that support corresponding value chain activities across businesses.

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Definitions:

Constant

A situation or state of affairs that does not change.

Investment Model

Theory that uses three factors—satisfaction, alternatives, and investments—to explain why people stay with their long-term relationship partners.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future decisions but often do.

Alternatives

Different options or choices available in any given situation or decision-making process.