Question: When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of .

When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of .
Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring another coffee shop one town over. This is an example of .
Cash cows have market shares and are in growth markets.
Suppose you have accepted a job as the president and CEO of a large transportation conglomerate. Over the years, the conglomerate has acquired a number of unrelated divisions. Your first action as CEO is to complete a strategic plan.
Use the following table and the Boston Consulting Group (BCG) matrix to answer the question that follows.
Business
Projected Growth Rate
Current Market Share
Shipping Low 1%
Cargo inspection High 5%
Railroad loading Low 75%
Freight forwarding High 70%
Which of the following divisions would you invest in cautiously?
Freight forwarding
Railroad loading
Shipping
Cargo inspection

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