Evaluate the extent to which there are any bases of relatedness among any of the four existing

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Evaluate the extent to which there are any bases of relatedness among any of the four existing businesses.

Form a group with three or four of your classmates. Your group represents the planning department of a large, domestically oriented manufacturer that has been pursuing a corporate strategy of unrelated diversification. Currently, the firm makes four basic products, as follows:
All-terrain recreational vehicles. This product line consists of small two- and three-wheeled recreational vehicles, the most popular of which is a gasoline-powered mountain bike.
Color televisions. The firm concentrates on high-quality, wide-screen, LED televisions.
Luggage. This line is aimed at the low end of the market and comprises pieces made from inexpensive aluminum frames covered with ballistics material (high-strength, tear-resistant fabric).
Backpacks are especially popular.
Writing instruments. The firm makes a full line of mechanical pens and pencils pitched to the middle-market segment, between low-end products such as Bic and high-end ones such as Montblanc.
Your firm’s CEO is contemplating international expansion. However, the CEO also thinks that to raise its profitability the corporation should begin pursuing a strategy of related diversification. This may mean selling off some businesses and perhaps buying or starting new ones. The CEO has instructed you to develop alternatives, evaluate those alternatives, and then make recommendations as to how the company should proceed.

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International Business

ISBN: 272390

9th Edition

Authors: Ricky W. Griffin, Michael W. Pustay

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