A Company Should Pursue Unrelated Diversification Instead of Related Diversification

question 14

Multiple Choice

A company should pursue unrelated diversification instead of related diversification when:

• A) its core skills are highly specialized and have few applications outside its core business.
• B) the company's top managers are skilled at acquiring and turning around poorly run enterprises.
• C) its core technological skills are applicable to a wide variety of industrial and commercial situations.
• D) it wants to maximize growth.
• E) the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope.

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Definitions:

Number Of Sales Calls

The total count of direct interactions, typically phone calls, made by sales representatives to potential or existing customers.

Output-Related Sales Objectives

Targets set by a business related to the quantity of sales or revenue generated within a specific period.

Unit Sales

The measurement of the quantity of items sold, not taking into account the revenue generated.

Personal Selling Process

A series of steps undertaken by salespersons to sell a product directly to a consumer, involving prospecting, presenting, handling objections, and closing the sale.