Question

When the businesses within an organization share some resources and technologies and each business generates less than 40 percent of the sales revenue of the organization, the firm is using the ____ diversification multiproduct strategy.
a. related-constrained
b. related-linked
c. unrelated
d. nondominant

Answer 1

Answer:

A. related-constrained

Explanation:

From our question, it is observed that businesses within an organization share some resources and technology. However, each business generates less than 40 percent of the sales revenue of the organization. This means that there is no dominant business within the organization.

The businesses operate on a scale of Operational Relatedness. This is the use of a related constrained diversification strategy to share activities among businesses.

Therefore, the firm is using the related-constrained diversification multiproduct strategy.