What traditional model does the board prefer for ABC?

• A. To become a digital services provider.
• B. To keep ABC as a traditional concrete producer.
• C. To pivot to consumer electronics.
• D. To specialize in recycling only.

Answer: (D)

Focusing on a single, established activity with deep expertise and predictable operations is a traditional way to run a company. Specializing in recycling only fits that approach because it concentrates resources on a known capability, allowing the firm to optimize processes, build strong supplier and regulatory relationships, and achieve cost efficiency within a familiar value chain. This path minimizes risk compared with moving into new areas like digital services or consumer electronics, which would require new technologies, markets, and different cost structures. Keeping the business rooted in recycling signals a preference for reinforcing core competencies and steady performance rather than diversification into uncertain ventures, even if the other options offer growth potential.