A Related Diversification Strategy Involves Building the Company Around Businesses

question 27

Multiple Choice

A related diversification strategy involves building the company around businesses

• A) with strategic fit with respect to key value chain activities and competitive assets.
• B) that are highly independent, proficient, and efficient operating firms.
• C) with strategic fit across separate value chain activities that drive each business.
• D) that can also include unrelated businesses with dissimilar resource requirements.
• E) that have dissimilar value chain activities with no cross-business commonalities.

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Definitions:

Injunctive Norm

Social norms that are perceived as approved or disapproved behaviors by a society or group, guiding what actions are considered acceptable.

Descriptive Norm

The perceived behavior patterns of a group, serving as a guide to what individuals believe is typical or normal behavior within that group.

Endangered Species

Groups of organisms that are at risk of extinction due to a drastic reduction in their population numbers or a threat to their habitats.

Conversion Theory

A theory concerned with how people change their beliefs or behaviors in response to direct persuasion in a group context.