Retrenching to a Narrower Diversification Base Is

question 13

Multiple Choice

Retrenching to a narrower diversification base is

• A)usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth.
• B)a strategy that allows a diversified firm's energies to be concentrated on building strong positions in a smaller number of businesses rather the stretching its resources and managerial attention too thinly across many businesses.
• C)an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.
• D)sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
• E)a strategy best reserved for companies in poor financial shape.

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