Final answer:
The strategic options to improve a diversified firm’s overall performance fall into five broad categories: product development, market penetration, market development, diversification, and vertical integration.
Step-by-step explanation:
The strategic options to improve a diversified firm's overall performance fall into five broad categories of actions. These categories include:
- Product development: Creating and launching new products or improving existing products to attract more customers and increase sales.
- Market penetration: Increasing market share by expanding into new markets or appealing to new customer segments.
- Market development: Expanding into new geographical regions or targeting new customer groups.
- Diversification: Entering new industries or expanding product lines to reduce risk and increase revenue.
- Vertical integration: Integrating forward or backward in the supply chain to gain control over inputs or distribution.