When formulating strategy, Theo Chocolates managers scan the business environment for factors that will or could impact the companys competitive advantage. Which of the following would pose a threat to Theo? Check all that apply.

Theo Chocolate employees attempt to form a union, seeking better pay and benefits.

The USDA releases a report about the potential link between chocolate and cancer.

Unlike other chocolate brands, Theo sources their cacao beans directly from farmers in Peru and the Democratic Republic of Congo, incurring greater costs than competitors who purchase from suppliers.

Joe Whinney, hires world-renowned chocolatier, Jacques Torres, who develops a line of chocolate bars that customers hate and a prominent food blogger features in a post as Chocolate Fails.

Seattle, home to Theo Chocolate, experiences around 155 days of rain per year. CEO of Theo, Joe Whinney, recently purchased a umbrella company which will produce umbrellas in various colors and sizes. This is an example of:

Vertical integration

Differentiation

Unrelated diversification

Related diversification

Because Theo Chocolate is committed to sustainability, and to treating cocoa growers fairly, customers feel that it is different from other chocolate manufacturers, and they are willing to pay more for what they feel is a higher quality product. This means that Theo Chocolate has adopted a strategy.