Question

Procter & Gamble (P&G) has a paper towel and baby diaper business, both of which use paper products. The firm's paper production plant produces inputs for both businesses. P&G most likely uses the _______________diversification strategy to create ____________.

a. related constrained; operational relatedness.
b. related linked; corporate relatedness.
c. related constrained; corporate relatedness
d. related linked; operational relatedness

Answer 1

P&G most likely uses the related constrained diversification strategy to create corporate relatedness.

Step-by-step explanation:

P&G most likely uses the related constrained diversification strategy to create corporate relatedness.

The related constrained diversification strategy refers to a situation where a company expands its operations into new products or services that are related to its existing product line or business. In this case, Procter & Gamble's paper towel and baby diaper businesses are both related to its paper production plant, as they use paper products as inputs.

By using the related constrained diversification strategy, P&G is able to leverage its expertise and resources in the paper industry to create corporate relatedness. This means that the different businesses within the company can benefit from shared resources, knowledge, and capabilities, leading to operational efficiencies and competitive advantages.