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:

Ecological Theory

A framework in psychology and sociology that emphasizes the complex interactions between individuals and their physical and social environments.

Scarce Resources

Items that are limited in availability and are necessary for survival, influencing competition and economic dynamics.

Ethnic Minority Groups

Ethnic minority groups are populations differentiated from the majority population based on cultural, national, tribal, racial, or religious characteristics.