Organızatıonal Theory & Design Deneme Sınavı Sorusu #842580
TORKU used to produce only sugar in the past, but now it has added the following segments to its production: chocolate products, bakery products, chocolate covered products, candy, frozen potatoes, dairy and meat products, etc. Considering the corporate-level strategies, which one of the following is exemplified by TORKU?
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backward vertical integration |
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forward vertical integration |
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unrelated diversification |
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related diversification |
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internal growth |
A corporate-level strategy of diversification allows a firm to use its core competencies to pursue opportunities in several industries and product markets. A firm engages in related diversification when it enters a new domain with similar or related core competence. Since these are all products of the food industry, there are related to the company’s core business. Choice (d) is the correct answer.
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