Question

When a firm enters into business which is unrelated to its existing business both in terms of

technology and marketing ______________.

A. conglomerate diversification.

B. horizontal integration.

C. vertical integration.

D. concentric integration​

Answer 1

Answer:

Concentric Diversification: It is similar to related diversification, wherein the new business entered into by the firm is associated with the existing business by way of process, technology or market. The newly entered product is a spin-off from the already existing facilities.

Answer 2

Answer:

Option A) Conglomerative Diversification.

Explanation:

Diversification is a growth strategy of a company, allowing business to expand its product and services. This increases profits of a company.

• Horizontal integration : introduction of new products or services to current service in order to expand market share
• Vertical integration : expanding existing product lines
• Concentric integration : a type of horizontal, which involves introduction of new products / services that are related to existing services
• Conglomerative : introduction of new products and services which ate not related to existing business firm.

exampl: Cloth company bringing out Toys.