The distinguishing factor between unrelated and related diversification strategy is that a firm using unrelated diversification strategy:
A) has numerous businesses that are linked in some manner.
B) manages several businesses with no reasonable connection.
C) focuses on one specific product,typically in one market.
D) develops core competencies using its resources and capabilities.

Question

Quizplus · Accepted Answer

A firm using unrelated diversification strategy manages businesses that have no reasonable connection, meaning they may operate in different industries or markets with no synergy or linkage between them. This allows for a wider portfolio of businesses, but may also lead to increased complexity in managing them.

The Distinguishing Factor Between Unrelated and Related Diversification Strategy Is