Asked by Bennie Raymond on Apr 24, 2024
Verified
Diversification brings the difficulties of complexity and the need to manage and integrate very dissimilar operations.
Diversification
A growth strategy to expand by acquisition of or investment in new and different business areas.
Complexity
The state or quality of being intricate or complicated.
- Recognize the challenges and strategies relevant to diversification and the desirability of various industry sectors.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
True
Explanation :
Diversification often leads to a larger and more complex organization with a variety of business units operating in different industries. This complexity can create challenges in terms of managing and coordinating the diverse operations effectively.
Learning Objectives
- Recognize the challenges and strategies relevant to diversification and the desirability of various industry sectors.
Related questions
A Firm That Uses a Diversification Strategy to Sell a ...
Economies of Scope Is a Common Reason for Firms That ...
A Company Can Shield Itself from the Adverse Effects of ...
Related Diversification Involves Growth by Acquiring New Businesses or Entering ...
Unrelated Diversification Involves Growth by Acquiring New Businesses or Entering ...