Value Products is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them launch new restaurants successfully. Value Products is pursuing a _____ strategy.

Question

02-10-2019
Business

contestada

Value Products is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them launch new restaurants successfully. Value Products is pursuing a _____ strategy.

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Nyctalus Nyctalus · Answer 1 · 2019-10-02T11:47:32+02:00

Answer: Diversification

Explanation: Diversification refers to the strategy in which the organisation tries to allocate its capital in several different businesses so that their risk exposure could be reduced.

In the given case, Value products is operating in different industries which are very much unrelated with each other. Thus, if one of their businesses incurs loss then they could cope it with the others.

Hence we can conclude that value products are pursuing diversification strategy.