Question: Peruse the business group listings for United Technologies shown below and listed at its website ( www.utc.com ). How would you characterize the company's corporate strategy? Related diversification, unrelated diversification, or a combination related-unrelated diversification strategy? Explain your answer.
- Carrier-the world's largest provider of air-conditioning, heating, and refrigeration solutions. Hamilton Sundstrand-technologically advanced aerospace and industrial products.
- Otis-the world's leading manufacturer, installer, and maintainer of elevators, escalators, and moving walkways.
- Pratt & Whitney-designs, manufactures, services, and supports aircraft engines, industrial gas turbines, and space propulsion systems.
- Sikorsky-a world leader in helicopter design, manufacture, and service.
- UTC Fire & Security-fire and security systems developed for commercial, industrial, and residential customers.
- UTC Power-a full-service provider of environmentally advanced power solutions.
- Interconnect Solutions-connectors and fittings for the production of automobiles, aircraft, railcars and locomotives, oil field equipment, medical equipment, and industrial equipment.
- Control Technologies-energy absorption and vibration dampening equipment, transducers and regulators, and motion controls used in the production of robotics, medical equipment, automobiles, sub-sea equipment, industrial equipment, aircraft, and military vehicles. Based on the above listing, would you say that ITT's business lineup reflects a strategy of related diversification, unrelated diversification, or a combination of related and unrelated diversification? What benefits are generated from any strategic fit existing between ITT's businesses? Also, what types of companies should ITT consider acquiring that might improve shareholder value? Justify your answer.