Imagine that you are the CEO of a multinational corporate consumer food company. What would make...

 

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Imagine that you are the CEO of a multinational corporate consumer food company. What would make it attractive to you to consider related diversification via acquisition, rather than unrelated diversification into a new industry, such by forming an internal startup subsidiary to enter and compete in the target industry? Multiple Choice when rival incumbent consumer food companies are likely to be slow or ineffective in combating a new entrant's efforts to crack the market when the incumbent industry enables your company to create strategic fits with the acquired firm to exploit cross- business value chain activities and resource similarities that could lead to more efficient production, distribution, and sale of profitable processed food products when adding new production capacity will not adversely impact the supply demand balance in the industry by creating oversupply conditions when internal entry for your company is cheaper than entry via acquisition when your company possesses the skills and resources to overcome entry barriers and there is ample time to launch the business and compete effectively Imagine that you are the CEO of a multinational corporate consumer food company. What would make it attractive to you to consider related diversification via acquisition, rather than unrelated diversification into a new industry, such by forming an internal startup subsidiary to enter and compete in the target industry? Multiple Choice when rival incumbent consumer food companies are likely to be slow or ineffective in combating a new entrant's efforts to crack the market when the incumbent industry enables your company to create strategic fits with the acquired firm to exploit cross- business value chain activities and resource similarities that could lead to more efficient production, distribution, and sale of profitable processed food products when adding new production capacity will not adversely impact the supply demand balance in the industry by creating oversupply conditions when internal entry for your company is cheaper than entry via acquisition when your company possesses the skills and resources to overcome entry barriers and there is ample time to launch the business and compete effectively