Which type of cost in a related-diversification strategy is a function of the number, size, and types of businesses that are linked?Multiple choice question.coordinationresource allocationgeographicinfluence
Question
Which type of cost in a related-diversification strategy is a function of the number, size, and types of businesses that are linked?Multiple choice question.coordinationresource allocationgeographicinfluence
Solution
The type of cost in a related-diversification strategy that is a function of the number, size, and types of businesses that are linked is coordination. This is because coordination costs involve managing and synchronizing various business units and operations, which can increase with the complexity and diversity of the businesses involved.
Similar Questions
What is a related-linked diversification strategy?Multiple choice question.one in which executives pursue various businesses opportunities that share only a limited number of linkagesone in which a firm derives more than 70% of its revenues from a single business and there are few, if any, linkages among its businessesone in which executives pursue only businesses where they can apply the resources and core competencies already available in the primary businessone in which a firm's low- and mid-level workers convince executives to give them a chance to decide corporate strategy
Which diversification strategy involves executives pursuing various business opportunities that share only a small number of similarities?Multiple choice question.related-constrainedunrelateddominant businessrelated-linked
In general, related diversification leads to high levels of performance because Blank______.Multiple choice question.it accesses numerous areas of value creation, such as economies of scale and scopeit is unable to overcome coordination and influence costsit focuses on creating as many products or services as possibleit allows the firm to focus on creating only one product or service
True or false: A major reason why a firm may choose a related diversification strategy is to take advantage of both economies of scale and of scope.True false question.TrueFalse
Which type of diversification is most likely to lead to superior performance?Multiple choice question.dominant businesssingle businessrelated diversificationunrelated diversification
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.