Once a Company Has Diversified into a Collection of Related

question 39

Multiple Choice

Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, which one of the following is NOT one of the main strategy options that a company can pursue?

• A) multinational diversification
• B) restructure the company's business lineup with a combination of divestitures and new acquisitions
• C) craft new initiatives designed to build/enhance the reputation and image of the company
• D) divest some businesses and retrench to a narrower diversification base
• E) broaden the diversification base

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Definitions:

Operating Cost

Expenses associated with the day-to-day operations of a business, excluding costs related to direct material and direct labor.

Useful Life

The estimated period that an asset is expected to be usable for the purpose it was acquired.

Differentiation Value

The perceived value added to a product or service through unique features and qualities that set it apart from competitors.

Value-based Pricing

A pricing strategy where the price of a product or service is based on the perceived value to the customer rather than the cost of production.