Purchase Solution

Diversification - Related and Unrelated Diversification

Not what you're looking for?

Ask Custom Question

Diversification is a corporate-level strategy that can create value for an organization.

What are the differences between related and unrelated diversification?
Why would an organization select a related or unrelated diversification strategy over the other? Explain with examples of related and unrelated diversification.

Please site at least 1 reference

Purchase this Solution

Solution Summary

The differences between related and unrelated diversification is given. What an organization should consider before deciding which type of diversification it should pursue is examined.

Solution Preview

QUESTION 1:
What are the differences between related and unrelated diversification?

RELATED DIVERSIFICATION:

Related diversification occurs when a business adds or expands its product lines or markets. That is, the business continues selling similar products or providing similar services to new clients or customers. For instance, a furniture store can expand its operations by purchasing another furniture store in a different city. This would be considered to be related diversification.

UNRELATED DIVERSIFICATION:

Unrelated diversification occurs when a business expands by adding new, or unrelated, product ...

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Introduction to Finance

This quiz test introductory finance topics.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.