Grouping related-unrelated Diversification Strategies

Question

Illustrates grouping related-unrelated Diversification Strategies?

Answer 1

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.