Business School 101: Diversification Strategies Quiz

Which of the following companies is known for its diversified presence in industries like healthcare and communications?

• 3M

• Apple

• Amazon

• Google

What is one of the main reasons companies choose to diversify their product lines?

• To increase employee satisfaction

• To mitigate risk during market volatility

• To reduce production costs

• To decrease marketing expenses

Which strategy involves entering new markets by launching or acquiring new products?

• Market penetration

• Product differentiation

• Cost leadership

• Diversification

How does related diversification benefit a company?

• By increasing employee turnover

• By reducing operational costs

• By leveraging core competencies

• By entering unrelated markets

Which company is an example of successful related diversification by leveraging its engine-building skills?

• BMW

• Honda

• Ford

• Toyota

What is a common outcome of unrelated diversification efforts?

• Increased brand loyalty

• Frequent failures

• Improved customer service

• Higher financial stability

Which company attempted to diversify by offering branded furniture, resulting in failure?

• Coca-Cola

• Nike

• Starbucks

• Pepsi

What is a key advantage of geographic diversification for big box stores?

• Reduced product variety

• Consolidated administrative functions

• Higher employee turnover

• Increased local competition

Which of the following companies has successfully expanded through geographic diversification?

• Walmart

• McDonald's

• Subway

• KFC

What is a benefit of consolidating administrative functions in geographic diversification?

• Streamlined processes

• Increased marketing costs

• Reduced operational efficiency

• Duplicated efforts