Problem:
A big question in business is: To Diversify or Not to Diversify? Some corporations (e.g., Amazon, 3M and General Electric) have diversified broadly over the years and have had great success. Other diversification attempts (e.g., Time Warnerâ??s purchase of AOL) have taken companies away from their core businesses and their experiences are less successful.
Research two corporations that have had different outcomes (one successful and one unsuccessful) with their diversification strategies. Compare and contrast each corporation's diversification strategy and evaluate the reasons for each oneâ??s success or failure in the venture.
1. Compare and contrast the two businesses--core business, their size, financials, global presence, use of e-business (marketing, sales, etc.).
2. Compare and contrast their outcomes (one successful, one unsuccessful).
3. Analyze the three primary reasons for the different outcomes.
4. Recommend two actions the unsuccessful one could have made to make their diversification venture successful.