Which of the following statements about the results of diversification is true?
A) Performance increases as firms change from related diversification to unrelated diversification.
B) Successful diversified organizations can balance centralized control levers with decentralized autonomy.
C) There is ample evidence that unrelated diversification strategy is unsuccessful in emerging economies.
D) Firms that failed with unrelated diversification have spent more time on implementation strategies and processes.

Question

Quizplus · Accepted Answer

Successful diversified organizations are able to balance centralized control levers with decentralized autonomy. This allows for effective decision making and resource allocation across different business units, leading to better performance. Option A is not always true as the success of diversification depends on factors such as the degree of relatedness between business units and the competitive profile of the industry. Option C is not a universal truth as the success of diversification can vary across different geographies and industry contexts. Option D is not a proven fact and ignores the importance of strategic fit and market opportunities in the success of diversification efforts.

Which of the Following Statements About the Results of Diversification