McKesson,a Large Distribution Company,sells Many Product Lines Such as Pharmaceuticals

question 58

Multiple Choice

McKesson,a large distribution company,sells many product lines such as pharmaceuticals and liquor through its super warehouses.This is an example of ____________.

• A) using related diversification to achieve value by sharing activities to create economies of scope
• B) using related diversification to achieve value by leveraging core competencies to create market power
• C) using unrelated diversification to create value by managing its portfolio to create financial synergies
• D) using unrelated diversification to create value by managing its portfolio to create restructuring advantages

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Definitions:

Weaknesses

Characteristics or conditions that put an individual or organization at a disadvantage relative to others, potentially hindering success or performance.

Opposition

Refers to resistance or disagreement with a particular idea, policy, or entity.

Assessment Tool

Instruments or techniques used to evaluate, measure, or gauge the effectiveness, performance, or impact of a program, project, or individual.

McKinsey & Company

A global management consulting firm that serves businesses, governments, non-governmental organizations, and not-for-profits. It aims to solve complex issues and improve performance across various sectors.