When McDonald's introduced the McCafe, it began offering a new product that was not available in traditional McDonald's stores. The introduction of the McCafe is an example of which of the following?
A) Transferring competencies
B) Diversification
C) Commonality
D) Economies of scope
E) Bureaucratic costs

Question

Quizplus · Accepted Answer

Diversification refers to a company entering a new market or industry that is unrelated to its current products or services. McDonald's introduction of the McCafe is an example of diversification because it is a new product that is not traditionally offered in its stores.

When McDonald's Introduced the McCafe, It Began Offering a New