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UY is a manufacturer of motor vehicles. It has recently decided to start manufacturing motorbikes and scooters in an attempt to provide what UY’s Managing Director referred to as ‘a full range of transport solutions to our customers’.

Which ONE of the following types of diversification is UY undertaking?

Many companies implement Total Quality Management initiatives and subject the quality of their products and services to a review by an external organization. The outcome of the review, if successful, is a certification of their quality. One such certification is

Entry through internal development usually consists of creating a whole new business entity. In order to successfully compete, any newbusiness has to compete with existing entry barriers, and with the possibility of retaliation by existing firms. Some of the more common entrybarriers are:I. Economies of scale.

II. Customer loyalty.

III. Advertising.

IV. Research and Development.

QQS is a business that sells gravel and stone. It has recently announced the launch of a new purchasing system which it has publically stated ‘will help our business to reduce its inventory management costs by fifteen percent per annum’.

Employees in the purchasing department of QQS have stated their opposition to the introduction of the new system, as they are convinced that the cost savings will be through job losses within the department.

In fact, QQS is planning to make the savings through reduced inventory holding costs thanks to the new system allowing them to reduce the amount of inventory held at any given time.

However, QQS’s management have yet to explain this to staff.

According to Kotter and Schlesinger, which ONE of the following four reasons for resistance best explains the reaction of QQS’s purchasing department staff?

Which ONE of the following statements is true?