Diversification Ought to Be Considered When

question 5

Multiple Choice

Diversification ought to be considered when

• A) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
• B) a company lacks sustainable competitive advantage in its present business.
• C) a company begins to encounter diminishing growth prospects in its mainstay business.
• D) a company has run out of ways to achieve a distinctive competence in its present business.
• E) a company is under the gun to create a more attractive and cost-efficient value chain.

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Definitions:

Kosslyn

Refers to Stephen Kosslyn, a cognitive psychologist known for his work on the nature of visual imagery and its function in the human brain.

Intelligence

Intelligence is the capacity to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Effective Challenges

Opposing or difficult situations that, when overcome, lead to personal growth or achievement.

Creative Thinking

The ability to think in new and original ways, coming up with innovative solutions to problems.