Question

T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. T&P is in the process of acquiring another company, its major music store rival ReBop Records. Because its rap stars are so famous, T&P charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year. T&P has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.Which corporate-level strategy does T&P appear to follow?a) Cost leadershipb) Related diversificationc) Unrelated diversificationd) Differentiatione) Retrenchment

Answer 1

Answer: Related diversification

Explanation:

The corporate-level strategy that T&P appear to follow is related diversification. Related Diversification is a situation that comes into place when there is an expansion or an addition of a company's existing production line.

In this scenario, we are informed that T&P is in the process of acquiring another company, its major music store rival ReBop Records. This will lead to an expansion of the production line of T&P.

Therefore, the corporate-level strategy that T&P appear to follow is Related diversification.