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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