Tammy, a strategy expert, is trying to convince a corporate client to consider unrelated diversification as a strategic move. Tammy explains to her client that diversifying into unrelated businesses

Tammy, a strategy expert, is trying to convince a corporate client to consider unrelated diversification as a strategic move. Tammy explains to her client that diversifying into unrelated businesses

discounts the importance of strategic fit and instead focuses on building and managing a group of businesses in attractive industries that can acquired on financial terms that allow for acceptable returns on investment.

is aimed at achieving good financial fit $($whereas related diversification aims at good strategic fit$).$

is the best way for a company to pass the attractiveness test in choosing which types of businesses$/$industries to enter.

generally offers more competitive advantage potential than related diversification.

concentrates on diversifying into businesses where a company can leverage use of a well$-$known brand name in ways that create added value for shareholders.