Questions: Wisconsin Dairy Farms wants to grow revenue and feels the best way to do this is by purchasing a business that is not in the dairy industry. After a lengthy analysis, it purchases Hydro Generator Corp. which supplies energy along the Pacific coast. What type of strategy is the company using? unrelated diversification related diversification vertical integration parallel integration

The answer is the first one: unrelated diversification.

Explanation for each option:

1. Unrelated Diversification: This strategy involves a company expanding its operations by acquiring or merging with a business that operates in a completely different industry. In this case, Wisconsin Dairy Farms is purchasing Hydro Generator Corp., which is in the energy sector, a completely different industry from dairy. Therefore, this is an example of unrelated diversification.

2. Related Diversification: This strategy involves expanding into a business that is related to the company's existing operations. Since Hydro Generator Corp. is not related to the dairy industry, this option is incorrect.

3. Vertical Integration: This strategy involves a company expanding its operations into different stages of production within its own industry. For example, a dairy farm might acquire a milk processing plant. Since Hydro Generator Corp. is not part of the dairy production process, this option is incorrect.

4. Parallel Integration: This term is not commonly used in strategic management. It might be confused with horizontal integration, which involves acquiring a competitor in the same industry. Since Hydro Generator Corp. is not a competitor in the dairy industry, this option is incorrect.

In summary, Wisconsin Dairy Farms is using an unrelated diversification strategy by acquiring a company in a different industry.