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Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy.

A. product development B. market development C. market penetration D. diversification E. product proliferation Individually packaged frozen meals would be a new product area for Sodexo (even though it is still a food, the manufacturing process would be quite different from the bulk food service required by cafeterias and dining halls). Consumers in grocery stores would also be a new market, since Sodexo currently serves universities, the military, and the like. Thus, with a new market and a new product, this would be an example of diversification.

AACSB: Knowledge Application Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-07 Describe how firms grow their business. Topic: Growth Strategies

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