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UGC NET Exam  >  UGC NET Questions  >  A(n) ________ is when a company might seek ne... Start Learning for Free
A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products or markets.
  • a)
    concentric strategy
  • b)
    conglomerate strategy
  • c)
    horizontal strategy
  • d)
    intensive growth strategy
Correct answer is option 'B'. Can you explain this answer?
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A(n) ________ is when a company might seek new businesses that have no...
Conglomerate strategy:
  • Conglomerate diversification refers to the development of new products that are unrelated to your original lines.
  • For example, your t-shirt company has now decided to start stocking apple products. 
  • Conglomerate diversification is a much riskier strategy than both concentric diversification and horizontal diversification.
  • This is because it requires more outlay in terms of product development and advertising.
  • Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is to improve the profitability of the acquiring firm.
  • Little, if any, the concern is given to achieving marketing or production synergy with conglomerate diversification.
  • One of the most common reasons for pursuing a conglomerate growth strategy is that opportunities in a firm's current line of business are limited.
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A(n) ________ is when a company might seek new businesses that have no...
Conglomerate strategy:
  • Conglomerate diversification refers to the development of new products that are unrelated to your original lines.
  • For example, your t-shirt company has now decided to start stocking apple products. 
  • Conglomerate diversification is a much riskier strategy than both concentric diversification and horizontal diversification.
  • This is because it requires more outlay in terms of product development and advertising.
  • Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is to improve the profitability of the acquiring firm.
  • Little, if any, the concern is given to achieving marketing or production synergy with conglomerate diversification.
  • One of the most common reasons for pursuing a conglomerate growth strategy is that opportunities in a firm's current line of business are limited.
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A(n) ________ is when a company might seek new businesses that have no...
Conglomerate Strategy:
Concentric strategy involves a company seeking new businesses that are related to its current technology, products, or markets. On the other hand, a conglomerate strategy is when a company seeks new businesses that have no relationship to its current operations. This type of strategy involves diversification into unrelated industries or markets.

Reasons for Conglomerate Strategy:
1. Risk Diversification: By entering into unrelated businesses, a company can spread its risks across different industries, reducing the impact of a downturn in one sector.
2. Growth Opportunities: Conglomerate strategy allows a company to explore new markets and industries that may offer growth opportunities not available in its current operations.
3. Market Power: Diversifying into unrelated businesses can help a company increase its market power and competitive advantage by expanding its presence in different markets.

Challenges of Conglomerate Strategy:
1. Management Complexity: Managing unrelated businesses can be challenging due to differences in operations, markets, and customer needs.
2. Resource Allocation: Allocating resources effectively across diverse businesses can be difficult, leading to inefficiencies and suboptimal performance.
3. Integration Issues: Integrating unrelated businesses into a cohesive corporate structure can be complex and may result in cultural clashes and operational challenges.
In conclusion, while a conglomerate strategy can offer benefits such as risk diversification and growth opportunities, companies must carefully consider the challenges involved in managing diverse businesses effectively.
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Direction: Read the following passage carefully and answer the question.If India has to develop her internal strengths, the nation has to focus on the technological imperatives, keeping in mind three dynamic dimensions: the people, the overall economy and the strategic interests. These technological imperatives also take into account a ‘fourth’ dimension, time, an offshoot of modern-day dynamism in business, trade, and technology that leads to continually shifting targets. We believe that technological strengths are especially crucial in dealing with this fourth dimension underlying continuous change in the aspirations of the people, the economy in the global context, and the strategic interests. The progress of technology lies at the heart of human history. Technological strengths are the key to creating more productive employment in an increasingly competitive market place and to continually upgrade human skills. Without a pervasive use of technologies, we cannot achieve the overall development of our people in the years to come. The direct linkages of technology to the nation’s strategic strengths are becoming more and more clear, especially since the 1990s. India’s own strength in a number of core areas still puts it in a position of reasonable strength in the geopolitical context. Any nation aspiring to become a developed one needs to have strengths in various strategic technologies and also the ability to continually upgrade them through its own creative strengths. For people-oriented actions as well, whether for the creation of large scale productive employment or for ensuring nutritional and health security for people or for better living conditions, technology is the only vital input. The absence of greater technological impetus could lead to lower productivity and wastage of precious natural resources. Activities with low productivity or low-value addition, in the final analysis, hurt the poorest most. The technological imperatives to lift our people to a new life, and to life, they are entitled to be important. India, aspiring to become a major economic power in terms of trade and increase in GDP, cannot succeed on the strength of turnkey projects designed and built abroad or only through large-scale imports of plant machinery, equipment and know-how. Even while being alive to the short-term realities, medium and long-term strategies to develop core technological strengths within our industry are vital for envisioning a developed India.Q.According to the above passage, which of the following are indicative of the fourth dimension?1) Aspirations of people2) Modern day dynamism3) Economy in the global context4) Strategic interestsCode

Direction: Read the following passage carefully and answer the question. If India has to develop her internal strengths, the nation has to focus on the technological imperatives, keeping in mind three dynamic dimensions: the people, the overall economy and the strategic interests. These technological imperatives also take into account a ‘fourth’ dimension, time, an offshoot of modern-day dynamism in business, trade, and technology that leads to continually shifting targets. We believe that technological strengths are especially crucial in dealing with this fourth dimension underlying continuous change in the aspirations of the people, the economy in the global context, and the strategic interests. The progress of technology lies at the heart of human history. Technological strengths are the key to creating more productive employment in an increasingly competitive market place and to continually upgrade human skills. Without a pervasive use of technologies, we cannot achieve the overall development of our people in the years to come. The direct linkages of technology to the nation’s strategic strengths are becoming more and more clear, especially since the 1990s. India’s own strength in a number of core areas still puts it in a position of reasonable strength in the geopolitical context. Any nation aspiring to become a developed one needs to have strengths in various strategic technologies and also the ability to continually upgrade them through its own creative strengths. For people-oriented actions as well, whether for the creation of large scale productive employment or for ensuring nutritional and health security for people or for better living conditions, technology is the only vital input. The absence of greater technological impetus could lead to lower productivity and wastage of precious natural resources. Activities with low productivity or low-value addition, in the final analysis, hurt the poorest most. The technological imperatives to lift our people to a new life, and to life, they are entitled to be important. India, aspiring to become a major economic power in terms of trade and increase in GDP, cannot succeed on the strength of turnkey projects designed and built abroad or only through large-scale imports of plant machinery, equipment and know-how. Even while being alive to the short-term realities, medium and long-term strategies to develop core technological strengths within our industry are vital for envisioning a developed India. Q. More productive employment demands

Direction: Read the following passage carefully and answer the question. If India has to develop her internal strengths, the nation has to focus on the technological imperatives, keeping in mind three dynamic dimensions: the people, the overall economy and the strategic interests. These technological imperatives also take into account a ‘fourth’ dimension, time, an offshoot of modern-day dynamism in business, trade, and technology that leads to continually shifting targets. We believe that technological strengths are especially crucial in dealing with this fourth dimension underlying continuous change in the aspirations of the people, the economy in the global context, and the strategic interests. The progress of technology lies at the heart of human history. Technological strengths are the key to creating more productive employment in an increasingly competitive market place and to continually upgrade human skills. Without a pervasive use of technologies, we cannot achieve the overall development of our people in the years to come. The direct linkages of technology to the nation’s strategic strengths are becoming more and more clear, especially since the 1990s. India’s own strength in a number of core areas still puts it in a position of reasonable strength in the geopolitical context. Any nation aspiring to become a developed one needs to have strengths in various strategic technologies and also the ability to continually upgrade them through its own creative strengths. For people-oriented actions as well, whether for the creation of large scale productive employment or for ensuring nutritional and health security for people or for better living conditions, technology is the only vital input. The absence of greater technological impetus could lead to lower productivity and wastage of precious natural resources. Activities with low productivity or low-value addition, in the final analysis, hurt the poorest most. The technological imperatives to lift our people to a new life, and to life, they are entitled to be important. India, aspiring to become a major economic power in terms of trade and increase in GDP, cannot succeed on the strength of turnkey projects designed and built abroad or only through large-scale imports of plant machinery, equipment and know-how. Even while being alive to the short-term realities, medium and long-term strategies to develop core technological strengths within our industry are vital for envisioning a developed India. Envisioning a developed India requires

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A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products or markets.a)concentric strategyb)conglomerate strategyc)horizontal strategyd)intensive growth strategyCorrect answer is option 'B'. Can you explain this answer?
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