Summary of Diversification Strategy
How to grow a business by diversifying successfully
Despite its poor reputation, business diversification can be profitable.
When a company fails, diversification is more likely to get the blame than concentration. Running multiple businesses is supposedly more dangerous than operating just one. But focus is overrated. With proper management, business diversity can deliver excellent investment returns. So says corporate strategy planner Graham Kenny whose book lists seven steps that “successful diversifiers” follow. Blending practical information with meaty, real-life examples, Kenny illustrates how notable conglomerates, such as General Electric, exercise the discipline that successful diversification demands. Although the book lacks some of the finer details you’d need to apply Kenny’s diversification program, getAbstract recommends this clear volume to business managers who want a research-based framework for assessing diversification opportunities.
In this summary, you will learn
- Why business diversification has a bad reputation
- Why diversifying offers bigger rewards than focusing on one business
- Which seven characteristics typify the companies that are leaders in diversification
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