Business School 101: Diversification Strategies

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

• Amazon

• Apple

• 3M

• Google

What is one of the primary reasons companies adopt a diversification strategy?

• To reduce employee turnover

• To mitigate risk during market volatility

• To improve customer service

• To increase advertising reach

How does related diversification benefit a company?

• By increasing employee satisfaction

• By entering unrelated markets

• By leveraging core competencies

• By reducing production costs

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

• Toyota

• Ford

• Honda

• BMW

What is a common outcome of unrelated diversification efforts?

• Financial instability

• Higher employee retention

• Successful market entry

• Increased brand loyalty

Which company failed in its unrelated diversification attempt by trying to sell branded bottled water?

• Harley-Davidson

• Pepsi

• Coca-Cola

• Nike

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

• Higher employee wages

• Increased local competition

• Consolidation of administrative functions

• Reduced marketing costs

Which company is known for its successful international expansion as part of its geographic diversification strategy?

• Costco

• Walmart

• Starbucks

• McDonald's

What is the main focus of geographic diversification?

• Improving customer service

• Reducing production costs

• Expanding into new geographic markets

• Entering new product categories

Which of the following is NOT a type of diversification strategy discussed in the video?

• Related diversification

• Unrelated diversification

• Product diversification

• Geographic diversification