A Company Can Best Accomplish Diversification into New Industries by

question 36

Multiple Choice

A company can best accomplish diversification into new industries by

• A)outsourcing most of the value chain activities that have to be performed in the target business/industry.
• B)acquiring a company already operating in the target industry, creating a new business from scratch, or forming a joint venture with one or more companies to enter the target industry.
• C)integrating forward or backward into the target industry.
• D)shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
• E)employing an offensive strategy with new product innovation as its centerpiece.

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Definitions:

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