Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?
A) Changing industry conditions
B) Changing firm-specific conditions
C) Diversification for the wrong reasons
D) Increasing bureaucratic costs of diversification
E) All of these

Question

Quizplus · Accepted Answer

All of the mentioned reasons can make a diversification strategy an unwise course of action for a company to pursue. 
- Changing industry conditions can make it difficult for the company to enter and succeed in new industries, leading to potential losses.
- Changing firm-specific conditions, such as a lack of resources or expertise, may make it challenging for the company to manage and operate in new business areas.
- Pursuing diversification for the wrong reasons, such as a desire to boost short-term profits without considering long-term viability, can lead to poor decision-making and losses.
- Increasing bureaucratic costs of diversification can strain the company's resources and negatively impact its overall performance.

Which of the Following Reasons Can Make a Diversification Strategy