Carefully explain the difference between and the rationale for selecting a strategy of related diversification and/or a strategy of unrelated diversification.
What will be an ideal response?
A related diversification strategy involves building the company around businesses where there is good strategic fit across corresponding value chain activities. Strategic fit exists whenever one or more activities constituting the value chains of different businesses are sufficiently similar to present opportunities for cross-business sharing or transferring of the resources and capabilities that enable these activities. Companies that pursue a strategy of unrelated diversification generally exhibit a willingness to diversify into any business in any industry where senior managers see an opportunity to realize consistently good financial results.
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Orange fiber-optic cables, the coaxial cables used by cable TV companies, and the slender copper telephone wiring common in homes are an important part of the infrastructure of information systems
Indicate whether the statement is true or false
"Using their brains instead of their brawn" BEST describes ______ workers.
Fill in the blank(s) with the appropriate word(s).
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called__________.
-communication channels -personalized anchors -message transmitters -meeting points
Xavier starts an investment management firm along with his friend Abdul. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Xavier if he has
A. comparable financial resources to Abdul. B. fewer financial resources than Abdul. C. more financial resources than Abdul. D. the status of a limited partner. E. the exact same financial resources as Abdul.