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Corporate Strategy MCQs

Which of the following is true regarding the impact of diversification on an organization's performance?

An organization's performance generally increases as it shifts from a related diversification strategy to a single-product strategy.

An organization's performance generally decreases as it shifts from a single-product strategy to related diversification strategy.

An organization's performance generally decreases as it shifts from a related diversification strategy to an unrelated diversification strategy.

An organization's performance generally increases as it shifts from a related diversification strategy to an unrelated diversification strategy.

Answer

Correct Answer: An organization's performance generally decreases as it shifts from a related diversification strategy to an unrelated diversification strategy.

Explanation:

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