Diversification Ought to Be Considered When

question 62

Multiple Choice

Diversification ought to be considered when:

• A) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
• B) a company lacks sustainable competitive advantage in its present business.
• C) a company begins to encounter diminishing market growth and stagnating sales prospects in its mainstay business.
• D) a company has run out of ways to achieve a distinctive competence in its present business.
• E) a company is under the gun to create a more attractive and cost-efficient value chain.

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Definitions:

Implementation Plan

A detailed outline of strategies, activities, timelines, and responsibilities to execute a project or strategy effectively.

Projected Financial Results

Forecasted financial outcomes based on current data and business trends, used to gauge future financial health.

Marketing Opportunities

Situations in which a company can capitalize on conditions in the marketplace to launch new products or increase sales of existing products.

Promotion Strategy

The plan for using various marketing tools and techniques to reach and convince potential consumers to buy a product or service.