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21.The most commonly used organizational structure for the diversification strategy is the business unit structure. The business unit structure can facilitate the direct management of the functional departments of the headquarters, and it is easier to obtain the economies of scale of manufacturing or sales of each business department.

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20.Under normal circumstances, the greater the degree of diversification and scale, the more difficult it is for strategic managers to work closely and implement strategies effectively, especially for senior managers with different backgrounds and different cognitions who cannot form effective communication. The risk of failure is higher.

19.In the management of a diversified enterprise implementing a business unit system, the responsibility for formulating corporate-level strategies and resource allocation is generally undertaken by the business unit level.

18.With the improvement of the external market, western strategic management scholars basically believe that unrelated diversification is the least economical, and they are unwilling to recommend this strategy as a growth strategy for the enterprise.

17.There is no benefit of reducing transaction costs in the unrelated diversified industry portfolio, nor is there the possibility of expanding economies of scale and other areas of economic benefits.