Grouping related-unrelated Diversification Strategies
Illustrates grouping related-unrelated Diversification Strategies?
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Grouping related-unrelated Diversification Strategies are as follows:
1. There is nothing to preclude a organization from diversifying into both unrelated and related businesses.
2. Indeed, in real practice the business structure of diversified companies varies considerably:
i. Dominant-business enterprises – one major center business accounts for 50 to 80 % of total revenues and a set of small unrelated or related businesses accounts for the remainder.
ii. Narrowly diversified – 2 to 5 unrelated or related businesses.
iii. Broadly diversified – broad ranging set of unrelated businesses, related businesses, or a combination of both.
3. Identifying a Diversified Company’s Strategy, point outs what to seem for in identifying the main parts of a company’s diversification strategy.
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