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:

Immediacy of Feedback

The concept of providing prompt responses to behaviors or performances, which helps in quickly correcting or reinforcing actions.

Interpersonal Skills

Abilities that enable an individual to interact well with others, including communication, empathy, and conflict resolution skills.

Problem-solving Skills

The ability to find solutions to difficult or complex issues through critical thinking and creativity.

Extensive Preparation

Thorough and comprehensive planning or groundwork done in anticipation of an event or activity.