The Most Compelling Reason Companies Should Diversify Can Be Found

question 9

Multiple Choice

The most compelling reason companies should diversify can be found in situations when:

• A) Core competencies are not similar
• B) Core competencies can be leveraged with other products or into other markets
• C) Management is similar in various businesses
• D) Cash resources can be leveraged

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Definitions:

Service Guarantee

A promise made to customers that a service will meet certain quality and satisfaction standards, often with an assurance of compensation for failure to meet these standards.

Strategic Management Approach

An organizational management activity focused on setting priorities, concentrating resources, and ensuring operations are aligned with long-term objectives and the external environment.

Market Synergy

The combined effect that exceeds the sum of individual effects, achieved when companies or products integrate, leading to enhanced market presence or competitiveness.

Technological

Relating to or involving technology, especially in regard to its development, implementation, and impact on society.