Diversification Becomes a Relevant Strategic Option for a Company EXCEPT

question 72

Multiple Choice

Diversification becomes a relevant strategic option for a company EXCEPT when it

• A) spots opportunities to expand into industries whose technologies and products complement its present business.
• B) leverages existing resources and capabilities by expanding into industries where these same resource strengths are key success factors and valuable competitive assets.
• C) has a powerful and well-known brand name that can be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.
• D) can open up new avenues for reducing costs by diversifying into closely related businesses.
• E) expands into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.

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Definitions:

Ad Hominem Fallacy

A fallacy that attacks the person making an argument rather than the argument itself, aiming to discredit the argument by discrediting its proponent.

Argument

A set of statements or reasons made to support or oppose an idea, cause, or proposition.

Person

An individual human being.

Culture

The shared beliefs, values, customs, behaviors, and artifacts that the members of a society use to cope with their world and with one another, transmitted from generation to generation through learning.