Summary of Diversification Strategy

How to grow a business by diversifying successfully

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Diversification Strategy book summary
Despite its poor reputation, business diversification can be profitable.


8 Overall

7 Applicability

8 Innovation

8 Style


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 and
  • Which seven characteristics typify the companies that are leaders in diversification.


Diversification Versus Concentration
Many business executives consider diversification risky. Concentrating on a core business has been a fashionable style of management for decades. It won many followers after the 1982 publication of In Search of Excellence, an influential, widely...
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About the Author

Graham Kenny is the managing director of Strategic Factors, an Australian firm specializing in strategic planning and performance measurement.

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