When an organization attempts to grow by merging with or acquiring firms in different and dissimilar industries,the strategy is known as a(n)________ strategy.
A)unrelated diversification
B)horizontal integration
C)vertical integration
D)unrelated differentiation

Question

Quizplus · Accepted Answer

Unrelated diversification refers to the expansion of an organization into unrelated industries that are not connected to their current business operations. This strategy involves acquiring or merging with firms in different industries to spread risk and create new market opportunities. Horizontal integration involves merging or acquiring firms in the same industry to increase market share, while vertical integration involves moving into different stages of the production process within the same industry. Unrelated differentiation is not a recognized strategy.

When an Organization Attempts to Grow by Merging with or Acquiring