Final answer:
Unrelated diversification is a strategy that involves managing a collection of unrelated businesses. It requires a high level of skill and expertise to successfully manage such diverse businesses.
Step-by-step explanation:
A strategy of unrelated diversification involves managing a collection of businesses that have no connection or similarity to each other. It is a demanding strategy that requires a high level of skill and expertise to successfully manage such diverse businesses.
For example, a company that owns a chain of restaurants, a clothing store, and a software development company would be pursuing unrelated diversification. Each business operates independently and has its own unique challenges and requirements.
Implementing an unrelated diversification strategy can be beneficial in certain cases, as it allows a company to spread its risks across different industries and markets. However, it also presents challenges in terms of managing multiple unrelated businesses effectively.