As long as a single-business company can achieve profitable growth opportunities in its present industry, a. it needs to avoid putting all of its "eggs" in one industry basket. b. it will face diminishing market opportunities and stagnating sales in its principal business. c. its opportunities are limited to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets. d. it has diminished prospects to lower costs by entering closely related businesses and/or an opportunity to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses. e. there is no urgency to pursue a diversification strategy.

Question

Tiana Padilla

Business

18 August, 07:34

As long as a single-business company can achieve profitable growth opportunities in its present industry, a. it needs to avoid putting all of its "eggs" in one industry basket. b. it will face diminishing market opportunities and stagnating sales in its principal business. c. its opportunities are limited to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets. d. it has diminished prospects to lower costs by entering closely related businesses and/or an opportunity to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses. e. there is no urgency to pursue a diversification strategy.

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Answers (1)

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Destiny Scott · Answer 1

e. there is no urgency to pursue a diversification strategy.

Explanation:

The diversification strategy is a strategy in which the company wants to expand their business on a large level it can be by introducing new products, establishing new branches etc

As long as a single business enterprise, in its present industry can achieve profitable growth opportunities, the enterprise can ease the diversification.

But in the given situation, there is no need to adopt diversification strategy.

Therefore the correct option is e.