Chapter 7

Question 1

There are three types of diversification

Answer 1

A. Limited diversification

1. Single-business
2. Dominant-business

B. Related diversification

1. Related-constrained
2. Related-linked

C. Unrelated diversification

Question 2

When a firm operates in multiple industries simultaneously, you can see they are implementing a

Answer 2

product diversification strategy

Question 3

When a firm operates in multiple geographic markets simultaneoulsy

Answer 3

Geographic market diversification strategy

Question 4

When a firm operates in multiple industries & geographic markets

Answer 4

Product-market diversification strategy

Question 5

What are valuable economies of scope?

Answer 5

1. Operational economies of scope
2. Financial economies of scope
3. Anticompetitive economies of scope
4. Employee and stakeholder incentives for diversification