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Lecture - 1
CORPORATE DIVERSIFICATION STRATEGIES
When company growth potential starts to wane, a company may go for diversification
into other lines of business. It can diversify into closely related business or into totally
unrelated business.
DIVERSIFICATION STRATEGIES
Strategies to diversify:
1. Strategies for entering new industries
2. Related diversification strategies
3. Unrelated diversification
Strategies to strengthen positions and performance of diversified
companies:
1. Divestiture and liquidation strategies
2. Corporate turnaround, retrenchment and restructuring strategies
3. Multinational diversification strategies.
Corporate retrenchment strategies involve radical surgery on the mix and percentage
make up of the types of business in the portfolio restructuring involves both
divestitures and new acquisitions.