Diversification ought to be considered when a

Multiple Choice $*$

company's profits are being squeezed, and it needs to increase its net profit margins and return on investment.

company lacks sustainable competitive advantage in its present business.

company begins to encounter diminishing growth prospects in its mainstay business.

company has run out of ways to achieve a distinctive competence in its present business.

company is under the gun to create a more attractive and cost$-$efficient value chain.