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:

Outsourcing

The practice of hiring external firms or individuals to perform tasks, handle operations or provide services for an organization.

Specific Skills

Abilities or expertise that are particularly suited to specific tasks or industries, often requiring specialized training or experience.

Cost Neutrality

A financial strategy or condition where new expenditures are offset by savings or additional revenue in other areas, resulting in no net impact on the budget.

Compensation and Benefits

The package of salary, wage, and other perks provided to employees in exchange for their work and expertise.