What incentives and resources encourage diversification?
Answer to relevant QuestionsWhat motives might encourage managers to over diversify their firm? What reasons account for firms’ decisions to use acquisition strategies as a means to achieving strategic competitiveness? Why would the Southwest/AirTran merger not be successful? What are the strategic competitiveness outcomes firms can reach through international strategies, and particularly through an international diversification strategy? What are the differences between the cost-minimization approach and the opportunity-maximization approach to managing cooperative strategies?
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