Asked by Lacey Marie on May 30, 2024
Verified
Related diversification involves growth by acquiring new businesses or entering business areas that are related to what the organization already does.
Related Diversification
A business growth strategy in which a company expands its operations into areas that are similar to its existing lines of business.
Acquiring New Businesses
involves the process of a company purchasing or merging with other companies to expand its operations or enter new markets.
- Distinguish between related and unrelated diversification strategies.
Verified Answer
ZK
Zybrea KnightJun 02, 2024
Final Answer :
True
Explanation :
Related diversification is a growth strategy that involves expanding into businesses that are closely related to the core business of the organization. This can provide opportunities for synergy and economies of scope, as well as reduce risk by leveraging existing capabilities and resources.
Learning Objectives
- Distinguish between related and unrelated diversification strategies.
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