Question: A. What are the potential problems for shareholders that may occur when a CEO starts thinking that diversification is a much-needed corporate strategy? Explain why

A. What are the potential problemsfor shareholdersthat may occur when a CEO starts thinking that diversification is a much-needed corporate strategy? Explain why this may be a problem for owners.

B. Is being a first-mover a better idea for a firm employing a differentiation strategy than it is for a firm employing a low-cost strategy? Why or why not? Explain.

C. How will a firm's value chain be affected when it decides to implement a differentiation strategy? That is, what changes must a firm make to adopt a differentiation strategy? Explain.

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