This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is conglomerate diversification? What are its advantages and disadvantages? What will be an ... (Read 108 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
on: Jul 6, 2018
What is conglomerate diversification? What are its advantages and disadvantages?
 
  What will be an ideal response?

Question 2

Which of the following statements is true about the strategic factors impacting the choice of organization design?
 
  A) As organization size increases, work specialization decreases.
  B) Large organizations need more coordinating mechanisms than small ones.
  C) Centralized structures are used in turbulent environments.
  D) Organizations that use digital technology tend to be structured on a centralized basis.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

carlsona147

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 6, 2018
Answer to Question 1

Conglomerate diversification involves managing a portfolio of businesses that are unrelated to each other. One advantage of conglomerate diversification is that risks are spread across different markets and industries. Potential downturns in one business segment may be offset by higher earnings in other business units. Research suggests that as a whole, conglomerates are not as profitable as the other types of corporate diversification strategies. The main problems appear to be that conglomerate diversification does not build on a firm's core competencies and that corporate executives do not have sufficient knowledge to effectively manage disparate business units.

Answer to Question 2

B


tiara099

  • Member
  • Posts: 588
Reply 2 on: Jul 6, 2018
:D TYSM

jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Relationships and diversification of the Bacteria and Archaea. Relationships and diversification of the Bacteria and Archaea.
Do you know the advantages of chocolate Do you know the advantages of chocolate
Advantages and disadvantages of select temperature measurement sites Advantages and disadvantages of select temperature measurement sites
Research Methods: Advantages and Limitations Research Methods: Advantages and Limitations
Routes of Drug Administration: Advantages and Disadvantages Routes of Drug Administration: Advantages and Disadvantages
Routes of Drug Administration: Advantages and Disadvantages Routes of Drug Administration: Advantages and Disadvantages
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library