_______ means addition of new products or introduction of established products into new markets.
Diversification
Understanding Business Expansion: Diversification Explained
The question asks for the term that describes adding new products or introducing existing products into new markets. Let's look at the options provided and see which one fits this definition.
Analysing the Options
- Interchangeability: This concept relates to the ability to replace one part or product with another similar one without affecting performance. It does not involve creating new products or entering new markets. So, this option is incorrect.
- Diversification: In business strategy, diversification means expanding a company's activities into business areas that are different from its core business. This can involve developing new products for existing markets, developing existing products for new markets, or developing new products for new markets. The definition provided in the question, "addition of new products or introduction of established products into new markets," perfectly matches the concept of diversification.
- Specialisation: This is the opposite of diversification. Specialisation means focusing on a narrow range of products, services, or markets to become an expert or leader in that specific area. It involves concentrating efforts, not expanding into new areas. So, this option is incorrect.
- Simplification: This term generally refers to the process of making something less complex or easier to understand or manage. While businesses might simplify processes or product lines, simplification itself is not the term for adding new products or entering new markets. So, this option is incorrect.
Based on the analysis, the term that correctly defines the addition of new products or the introduction of established products into new markets is Diversification.
Important Questions from Operations Research
A transportation problem with m origins and n destinations becomes a trans-shipment problem with
Customers arrive at a reception counter at an average interval rate of 10 minutes and the receptionist takes an average of 6 minutes for one customer. The average queue length is:
Match List I with List II
List I
List II
A.
Markovian property
I.
Rule of determining the order in which members of the queue are selected to begin service
B.
Waiting time in system
II.
The time of next arrival is completely uninfluenced by when the last arrival occurred
C.
Steady state condition
III.
The queueing is in after operating for some time with a fixed utilisation factor less than one
D.
Queue discipline
IV.
Elapsed time that an individual customer spends in queue, both before service and during service
Choose the correct answer from the options given below:
In Queuing Theory, statistical pattern by which customers arrive over a period of time, follows
Arrange the operations in production planning and control in correct sequence :
(i) Routing
(ii) Dispatching
(iii) Follow up
(iv) Scheduling
Choose the correct answer from the code given below:
