Item9

Item 9

As long as a single-business company can achieve profitable growth opportunities in its present industry,

Multiple Choice

• it needs to avoid putting all of its "eggs" in one industry basket.

• it will face diminishing market opportunities and stagnating sales in its principal business.

• its opportunities are limited to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets.

• it has diminished prospects to lower costs by entering closely related businesses and/or an opportunity to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses.

• there is no urgency to pursue a diversification strategy.