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After a particularly difficult analysts call, the CEO of your company expresses extreme dismay: I just don't get it! Why are they so against

 

After a particularly difficult analysts call, the CEO of your company expresses extreme dismay: "I just don't get it! Why are they so against our plan? We need to be developing new products and entering new markets. How else do they expect us to grow? We can't just stay where we are, it's too risky. They're financial guys! They must know that the first rule for reducing risk is to diversify. Besides, all of our competitors are in different markets and entering more every day." Please patiently explain to your CEO the errors in her thinking regarding growth options, managing risk (both financial and marketing) and why focus is the foundation for success in marketing (16 pts). If the rule for reducing financial risk is to diversify, then why don't the analysts agree with the CEO's strategy? (I guess the other way to ask the question is why from the analysts' perspective do they also want the company to focus?) (4pts)

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