Considerably more communication and coordination are needed to create value from related diversification than from the other corporate-level strategies.

Question

Quizplus · Accepted Answer

Related diversification involves expanding into industries that have some degree of synergy or relation with the current operations of the company. This requires a higher level of communication and coordination between the different business units to create value from shared resources and capabilities. In contrast, unrelated diversification and vertical integration strategies may not require as much coordination and communication as the businesses are often separate and operate independently.

Considerably More Communication and Coordination Are Needed to Create Value