Retrenching to a Narrower Diversification Base

Multiple Choice

Retrenching to a narrower diversification base

A) is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth.
B) has the advantage of focusing a diversified firm's energies on building strong positions in a few core businesses rather the stretching its resources and managerial attention too thinly across many businesses.
C) is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.
D) is sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
E) is a strategy best reserved for companies in poor financial shape.