Barbara Rentler, CEO of Ross Stores, Inc. (parent company of Ross Dress for Less and dd's Discount retail chains) is considering broadening her company's business scope, by building positions in new related or unrelated businesses. Ms. Rentler would be advised to pursue a diversification strategy for all of the following reasons except
A. Ross wants to make new acquisitions to strengthen or complement some of its present businesses, market positioning, and competitive capabilities.
B. Ross's top management wants to increase its compensation.
C. Ross's management wants to lessen the company's vulnerability to seasonal or recessionary influences or to threats from emerging new technologies, legislative regulations, and new product innovations that alter buyer preferences and resource requirements.
D. Ross has resources or capabilities that are eminently transferable to other related or complementary businesses.
E. Ross's growth is sluggish and it wants the sales and profit boost that a new business can provide.
Answer: B
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