A company 'Apollo' tyres diversifying in entertainment business can be a classic example of?

Correct answer: A. Conglomerate diversification

  • A. Conglomerate diversification
  • B. Related diversification
  • C. Both A and B
  • D. none of above

Explanation

Moving from tyres into entertainment places the company in an unrelated industry, so it is conglomerate or unrelated diversification. Related diversification would involve entering a business connected by markets, technology, or capabilities.

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Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.

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