Achieving the several operational economies of scope

Reference no: EM131803252

Question: One of the British financial institutions that specializes in banking and insurance services surveyed the external environment and reached the conclusion that organic food retailing is one of the fastest growing businesses. The financial institution decided to diversify into the retailing of organic food through the acquisition of Britain biggest supermarket chain specializing in organic food. In justifying and defending this diversification move, the CEO of the financial institution argued that this diversification would help his financial institution and the supermarket chain achieves several operational economies of scope? Do you agree with the reasoning that the CEO used to justify the diversification? Why?

Reference no: EM131803252

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