Once a firm has diversified and established itself in several different businesses, then its main strategic alternatives include all but which one of the following? A. Broadening the firm's business scope by diversifying into additional businesses B. Retrenching to a narrower base of business operations by divesting some of its present businesses C. Pursuing multinational diversification and striving to globalize the operations of several of the company's business units D. Restructuring the company's business lineup and putting a whole new face on the company's business makeup E. Shifting from a multi-country to a global strategy

Question

Rolando Ibarra

Business

3 October, 15:17

Once a firm has diversified and established itself in several different businesses, then its main strategic alternatives include all but which one of the following? A. Broadening the firm's business scope by diversifying into additional businesses B. Retrenching to a narrower base of business operations by divesting some of its present businesses C. Pursuing multinational diversification and striving to globalize the operations of several of the company's business units D. Restructuring the company's business lineup and putting a whole new face on the company's business makeup E. Shifting from a multi-country to a global strategy

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Anton Lucero · Answer 1

E. Shifting from a multi-country to a global strategy.

Explanation:

The process of diversification allows the firms to reap the competitive advantages as the benefits of the skills and transfers, low costs economies of scope. Cross boundaries used by the powerful brands and collaboration in the creation of stronger and competitive capabilities. A diversified firms thus look for a global strategy to spread its risks and establish its business and develop its main strategic alternatives. The diversified firms hence have ample market opportunities and thereby brain the scope of the business.