The Fortune 500 firms are very large, and many of them have significant product diversification. Do you believe these large firms are over diversified. Do they experience lower performance than they should?
One rationale for pursuing related diversification is to obtain market power. In the United States, however, too much market power may result in a challenge by the US Justice Department (because it may be perceived as anticompetitive). In what situations related diversification might be considered unfair competition?
You have two job offers, one from a dominant-business firm and one from an unrelated diversified firm (suppose the beginning salaries are virtually identical). Which offer would you accept and why?