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:

Subcontractors

Third-party companies or individuals that are hired to perform a specific part of a project under the direction of a general contractor.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Key Supplier

A pivotal supplier crucial to the supply chain for its materials, services, or products, often due to their quality, reliability, or unique offerings.

Bidding Process

The procedure by which companies submit proposals or bids to win contracts, often used for projects, procurement, or services.