Question: Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when A. there is

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when

  • A. there is ample time to launch the new business from the ground up
  • B. the company has built up a hoard of cash with which to finance a diversification effort
  • C. it is impractical to outsource most of the value chain activities that have to be performed in the target business/industry
  • D. all of the potential acquisition candidates are losing money

  • E. none of the companies already in the industry is an attractive strategic alliance partner

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