Strategies of Related Diversification

  • Reference: HBS-715S23

  • Publication Date: Oct 25, 9

  • Fecha de edición: Nov 4, 2005

  • Source: HBSP (USA)

  • Type of Document: Case

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Description

To maximize their effectiveness, color cases should be printed in color. Which businesses should a firm expand into? This question of corporate scope is central to corporate strategy. Flawed scope decisions can have severe consequences, and the trauma experienced by many companies as a result of mistaken decisions to expand scope is often large. What leads to such mistakes? Where do managers go wrong? And, what might be a sensible logic by which to approach the question of scope expansion? Examines these questions and the logic of the scope decision in those instances where the target business is ostensibly related in some way to a company's existing ones.

Keywords

Corporate strategy Decision analysis Decision making Diversification