Refer to the scenario below to answer the following questions.
Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-If you decided to purchase a chain of five home furnishing stores because it was a good investment, this would be considered which strategy?
A) horizontal integration
B) unrelated differentiation
C) related diversification
D) unrelated diversification
E) vertical integration

Question

Quizplus · Accepted Answer

Purchasing a chain of home furnishing stores is an example of unrelated diversification because the new business is not related to the current fast-food restaurant business.

Refer to the Scenario Below to Answer the Following Questions