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Management · Q112

Strategic Management

Graduate and Post Graduate · Management · question 112

Q112

An organization that is diversifying its product line is exhibiting what type of growth strategy?

A.
stability
B.
retrenchment
C.
growth
Answer
D.
maintenance

Answer: Option C

Solution

Answer: Option C
Solution:
An organization that is diversifying its product line is exhibiting growth type of growth strategy. Diversification is a corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market.