What Makes Related Diversification an Attractive Strategy Is

question 30

Multiple Choice

What makes related diversification an attractive strategy is

• A) the ability to broaden the company's product line.
• B) the opportunity to convert the competitive advantage potential into 1 + 1 = 3 gains in shareholder value.
• C) the potential for improving the stability of the company's financial performance.
• D) the ability to serve a broader spectrum of buyer needs.
• E) the added capability it provides in overcoming the barriers to entering foreign markets.

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Definitions:

Limit Production

A policy or practice aimed at curtailing the amount of goods manufactured or services provided, often to stabilize or increase prices or to conserve resources.

United Auto Workers

An American labor union representing workers in the automobile manufacturing industry, as well as other sectors of the economy, and is known for its role in advocating for workers' rights and benefits.

General Motors

A multinational corporation based in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.

National Guard

A reserve military force composed of state National Guard militia units, which operate under state jurisdiction but can be mobilized for federal duty.