It Becomes Particularly Urgent for a Company to Consider Diversification

Multiple Choice

It becomes particularly urgent for a company to consider diversification when there are

A) opportunities to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets.
B) diminishing market opportunities and stagnating sales in its principal business.
C) opportunities to lower costs by entering closely related businesses.
D) opportunities to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses.
E) needs to avoid putting all of its "eggs" in one industry basket.