The curvilinear relationship of corporate performance and diversification indicates that: dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies. the highest performing business strategy is related constrained diversification. the less related the businesses acquired, the higher performing the organization. none of the strategies consistently outperforms the others.

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter8: Strategic Analysis: Understanding A Firm’s Competitive Environment
Section: Chapter Questions
Problem 8CRQ: What are generic competitive strategies, and how are they implemented in a firms value chain...
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  1. The curvilinear relationship of corporate performance and diversification indicates that:

     
    1. dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies.

       
    2. the highest performing business strategy is related constrained diversification.

       
    3. the less related the businesses acquired, the higher performing the organization.

       
    4. none of the strategies consistently outperforms the others.

       
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