Reference no: EM132176138
Course Title: Business Policy and Strategy Behavior
Unrelated diversification:
Value chains are so dissimilar that no competitively valuable cross-business relationships exist
Unrelated Diversification Guidelines:
* When revenues derived from an organization’s current products would increase significantly by adding the new, unrelated products
* When an organization’s present channels of distribution can be used to market the new products to current customers
* When the new products have countercyclical sales patterns compared to present products
* When an organization’s basic industry is experiencing declining annual sales and profits
* When there exists financial synergy
* When an organization has the opportunity to purchase an unrelated business that is an attractive investment opportunity
* When existing markets for an organization’s present products are saturated
* When antitrust action could be charged against an organization that historically has concentrated on a single industry
What company was offered in class as an example of a firm pursuing unrelated diversification?
A. Apple Computer's
B. General Electric
C. Wal-Mart
D. Barnes & Noble
E. Home Depot