stratmgmnthw4 - Strategic Management Module 4 HW Assignment...

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Strategic Management Module 4 HW Assignment 1) A company is likely to choose related diversification when they want to add or expand on existing products or services. It usually provides for an easier expansion because you know the industry and can use that knowledge as leverage. A company would choose unrelated diversification when they want to add new, unrelated products or services. This would help to diversify the company’s business portfolio. This would help if your initial business hits a lull, because now your new venture may find success or keep profits rolling while the other stumbles. 2) Internal venturing would be the best choice when the new business is in the early stages of the industry life cycle and faces low barriers to entry, is closely related to the firm's existing operations and when the firm is willing to accept a longer time frame in the process. Acquisitions are a better choice when the new business is in a mature industry with higher barriers to entry, is not related to the company's existing business and when the
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stratmgmnthw4 - Strategic Management Module 4 HW Assignment...

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