Imagine that you are the CEO of a discount clothing retailer that is considering broadening the company's business scope, by building positions in new related or unrelated businesses. You would be advised to pursue a diversification strategy for all of the following reasons, except:
Multiple Choice
A. Your company wants to make new acquisitions to strengthen or complement some of its present businesses, market positioning, and competitive capabilities
B. Your company's top management wants to increase its compensation
C. Your company's management wants to lessen the company's vulnerability to seasonal or recessionary influences or to threats from emerging new technologies, legislative regulations, and new product innovations that alter buyer preferences and resource requirements.
D. Your company has resources or capabilities that are eminently transferable to other related or complementary businesses.
E. Your company's baseline growth is sluggish and you are seeking the sales and profit boost that a new business can provide.