Asked by Ja'Nayla Watts on Jul 21, 2024
Verified
Enigma Breweries, a distillery company, bought Suave Clothing, a premium men's fashion boutique chain. By entering a different business area, Enigma Breweries plans to grow and expand its business and profits. Which type of growth strategy has Enigma Breweries adopted?
A) growth through concentration
B) growth through diversification
C) market development strategy
D) market penetration strategy
E) product development strategy
Diversification
A strategy of investing in a variety of assets to reduce exposure to any single asset or risk.
Different Business Area
Various sectors or divisions within a business environment that each focus on distinct operational or market-related activities.
- Identify the distinctions among multiple strategies for business expansion, such as concentration, related and unrelated diversification, forward, backward, and vertical integration, as well as retrenchment.
- Understand the strategic consequences of expanding a business through mergers, acquisitions, and international growth.
Verified Answer
NS
Nadia SwendehJul 22, 2024
Final Answer :
B
Explanation :
Enigma Breweries has adopted a growth through diversification strategy by entering a different business area (men's fashion boutique chain) to grow and expand its business and profits.
Learning Objectives
- Identify the distinctions among multiple strategies for business expansion, such as concentration, related and unrelated diversification, forward, backward, and vertical integration, as well as retrenchment.
- Understand the strategic consequences of expanding a business through mergers, acquisitions, and international growth.
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