One Strategic Fit-Based Approach to Related Diversification Would Be to

question 63

Multiple Choice

One strategic fit-based approach to related diversification would be to

• A)diversify into new industries that present opportunities to combine value chain activities of two or more businesses to lower costs.
• B)diversify into those industries where the same kinds of driving forces and competitive forces prevail,thus allowing use of much the same competitive strategy in all of the businesses a company is in.
• C)acquire rival firms that have broader product lines so as to give the company access to a wider range of buyer groups.
• D)acquire companies in forward distribution channels (wholesalers and/or retailers).
• E)expand into foreign markets where the firm currently does no business.

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Definitions:

Corn Future Contract

A standardized legal agreement to buy or sell corn at a predetermined price at a specified time in the future, used as a financial instrument for speculation or hedging.

Spot Price

The current market price at which an asset can be bought or sold for immediate delivery.

Bushel

A unit of volume that is used in agriculture, specifically in the United States, for measuring quantities of grain.