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Ch.8 Corporate Strategy: Vertical Integration and Diversification Describe the relationship between the level of diversification and performance (Hint: There is an inverted U shaped relationship

Ch.8 Corporate Strategy: Vertical Integration and Diversification

Describe the relationship between the level of diversification and performance (Hint: There is an inverted U shaped relationship between the type of diversification and overall firm performance). Which level of diversification usually results in the highest firm performance? Why? Which level of diversification usually results in the lowest firm performance? Why?

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