Question 1
(a) Analyse how you would determine whether the combined value of a company's diversified businesses is greater to the company than each of the individual businesses. Provide reasons for your analysis.
Question 2
Conduct your own research on Woolworths Limited in order to address the following questions:
(a) Do you believe that the combined value for Woolworths Limited of its businesses is greater than the value of each of the individual businesses? Justify your opinion.
(b) Why do you think Woolworths Limited has pursued a diversification strategy? Explain your choice.
(c) What type of diversification has Woolworths adopted? Explain its key features and why you think this type of diversification was chosen. Support your answer with a diagram that shows the relationship of the businesses.
(d) Assess the level of success you think Woolworths has achieved from diversification of its businesses.