One strategic fit-based approach to related diversification would be to
A. acquire rival firms that have broader product lines so as to give the company access to a wider range of buyer groups.
B. expand into foreign markets where the firm currently does no business.
C. acquire companies in forward distribution channels (wholesalers and/or retailers).
D. diversify into foreign markets where the firm has unrelated businesses.
E. diversify into new industries that present opportunities to transfer specialized expertise, technological know-how, or other valuable resources and capabilities from one business's value chain to another's.
Answer: E
You might also like to view...
When preparing the statement of owner's equity, the beginning capital balance can always be found
A) in the Income Statement columns of the work sheet B) in the statement of cash flows C) in the general ledger D) in the Balance Sheet columns of the work sheet
The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example.?Cost of GoodsCost of Goods?ManufacturedSoldBeginning finished goods inventory___0_____+__Ending finished goods inventory_____________Direct labor _____________Indirect labor _____________Beginning work in process inventory_____________Ending work in process inventory_____________General and administrative expenses_____________Indirect materials _____________Beginning raw materials inventory_____________Ending raw
materials inventory_____________Raw material purchases_____________Depreciation of factory building_____________Cost of goods manufactured_____________ What will be an ideal response?
Notren, Inc, a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, "Any disputes that arise under this contract will be resolved in the courts of Singapore." This contract term is a A)letter of credit
B)choice of language clause. C)choice of forum clause. D)draft clause.
When it acts as a lender of last resort, the IMF may increase the likelihood that financial institutions take excessive risks and thus increase moral hazard
Indicate whether the statement is true or false