Question

The three primary means by which a firm can diversify are_____________.a. Mergers and acquisitions; joint ventures and strategic alliances; internal b. Mergers and acquisitions; differentiation; overall cost leadershipc. Joint ventures and strategic alliances; integration of value chain activities; acquiring human capital d. Mergers and acquisitions; internal development; differentiation

Answer 1

The correct answer is letter "A": Mergers and acquisitions; joint ventures and strategic alliances; internal development.

Step-by-step explanation:

Business relationships among companies are crucial. Organizations can take advantage of the competencies of other firms as part of the process of achieving their goals. When corporations' core competencies -not necessarily their products- they can come together to diversify their products and services.

Product diversification can be achieved through mergers, acquisitions, joint ventures, strategic alliances but also through internal development.