1. I magine that IBM has decided to diversify into the telecommunications business to provide online cloud computing data services and broadband access for businesses and individuals. What method would you recommend that IBM pursue to enter this industry? Why?
2. Under which conditions are joint ventures a useful way to enter new industries?
3. I dentify Honeywell's (www.honeywell.com) portfolio of businesses that can be found by exploring its website. In how many different industries is Honeywell involved? Would you describe Honeywell as a related or an unrelated diversification company? Has Honeywell's diversification strategy increased profitability over time?