Product-related diversification involves

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Reference no: EM131802102

1. Product-related diversification involves all of the following except:

The principal control mechanism is financial control

Entries into activities that are related to a firm’s existing markets and/or activities.

The emphasis is on economies of scale rather than scope.

Firms pursuing this strategy need to foster a centralized organizational structure.

Firms pursuing this strategy attempt to achieve operational synergy.

2. The move where a firm withdraws from a low-value market to attract rival firms to divert resources into the low-value markets in order to capture a high-value market refers to:

Thrust

Feint

Gambit

Deception

Retaliation

Reference no: EM131802102

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