[solved] Which of the following is not a good strategic reason why a company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses?

Because rapidly changing conditions (either favorable or unfavorable) in one or more of a company's core businesses make it desirable to expand into other industries

Because the company has an imbalance of cash cow and cash hog businesses

Because there is attractive potential for transferring a portion of its portfolio of competitively potent resources and capabilities to other related or complementary businesses

Because the company's growth is sluggish and it needs the sales and profit boost that a new business can provide

Because it is desirable to make new acquisitions in order to complement and strengthen the market position and competitive capabilities of one or more of its present businesses

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09-10-22 | 06:25:43

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