Which of the following statements is true regarding related diversification?
A) The bureaucratic costs associated with managing related diversification are much
greater than those associated with unrelated diversification.
B) Considerably more communication and coordination are needed to create value from
unrelated diversification than from related diversification.
C) A functional structure is most suitable for an organization that is pursuing a strategy
of related diversification.
D) If unrelated diversification is to provide the gains comparable to those obtained from
related diversification, a much larger corporate headquarters staff is required to
coordinate interdivisional activities.
Co-optation is a way to ________.
A) empower employees
B) manage coalitions
C) decrease nonsubstitutability
D) decentralize authority