Which of the following is the most compelling reason for diversifying into a new business? The entry barriers for this new business are low The company has a corporate advantage when it enters this new business Five forces analysis suggests that the industry is attractive The new business is unrelated to its existing businesses

Which of the following is the most compelling reason for diversifying into a new business? The entry barriers for this new business are low The company has a corporate advantage when it enters this new business Five forces analysis suggests that the industry is attractive The new business is unrelated to its existing businesses

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Similar questions

Diversification is the process of firms expanding their operations by entering new businesses. Is it better for a company to expand in related or unrelated businesses? and why? Cite references of answer
٢٤( When a company uses related diversification as a growth strategy, it gets an advantage of common pool of resources and capabilities such as research & development, marketing & selling etc. Select one: a. False b. True
A company resource weakness or competitive deficiency A) represents a problem that needs to be turned into a strength because weaknesses prevent a firm from being a winner in the marketplace. B) is something a company lacks or does poorly (in comparison to rivals) or a condition that puts it at a disadvantage in the marketplace. C) prevents a company from having a distinctive competence. D) usually stems from having a missing link or links in the industry value chain. E) causes the company to fall into a lower strategic group than it otherwise could compete in.
Environmental factors can cause major setbacks for a given industry. Select a company in an industry that was recently affected by negative environmental factors for which you would like to implement strategies to reduce costs. Describe the company and the negative environmental factors that caused major setbacks. What strategic financial decisions would you implement to help either increase revenue or reduce costs?
Which of the following statements is an advantage of related diversification strategy? a. Related diversification strategy can allow a sick or dying company to use capital generated in a profitable division to prop it up for a short period of time. b. Related diversification strategy allows a firm to maintain several businesses that are not connected in any way. c. The sharing of resources is a key component of developing economies of scope and often increases a firm’s competitive advantage. d. Related diversification strategies often achieve financial economies through the restructuring of business units.
Change in the status quo of any market component creates some degree of equilibrium, which means that there are likely to be customers somewhere who are being underserved, creating an opportunity for new business opportunities. Select one: True False The Creating Phase is a creative activity where old strategies are used to envision and define businesses of the future. Select one: True False A _____________________ ____________________ is a market, product, technology, or business process that lies beyond a company’s current corporate strategy and business model. a. Strategic Frontier b. Strategic Plan c. Business Model d. Discovery team
Which of the following is a characteristic of a growth industry? A) Entry barriers based on access to key technological know-how B) Intense price competition among existing firms C) Rivalry tends to be relatively low D) Excess productive capacity due to slow demand growth E) None of the above
A company's competitive strategy should A) be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. B) be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers. C) ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves. D) be aligned toward being at least an average performer within the industry. have the resources and capabilities to incorporate standard attributes into its product offering.
22) Which of the following is true regarding diversification? A) Diversification is classified into related diversification and unrelated diversification b) Firms diversify to achieve some performance objectives c) Diversification is the entry of firm or business unit into new lines of activity, either by processes of internal business development or acquisition, which entail changes in it administrative structure, systems and other management processes d) A and B e) A and B and C
Automotive industry has been generally considered to be at the maturity stage of the industry life cycle. Which of the following observations is consistent with this argument? Group of answer choices A. Many firms pay zero dividends to shareholders B. Product lineup continues expanding with innovations C. Industry growth rate is similar to the growth rate of the overall economy D. High profit margins attract new entrants
Which among the following is true? a) Porter’s 5 forces model focuses on the industry environment and actors who influence industry profitability directly b) The PESTLE model focuses on the larger environment and trends impact a firms strategy indirectly c) Both of the above d) None of the above
Which of the following is an advantage of an entrepreneur purchasing an existing business? Select one: A. Based on the track record of business, the new owner has leverage in negotiating trade credit terms. B. Policies are already present C. The target market, peak seasons, and timing have already been established D. None of the above E. A, B & C