ConAgra, a diversified food producer, increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all its food divisions. This is an example of using
A. unrelated diversification to acquire financial synergies through portfolio management.
B. unrelated diversification to acquire parenting, restructuring, and financial synergies through restructuring and parenting.
C. related diversification to acquire economies of scope by leveraging pooled negotiating power.
D. related diversification to acquire market power by leveraging pooled negotiating power.
Answer: D
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