After reading this chapter, you should have a good understanding of the following learning objectives:
LO 6.1 | The reasons for the failure of many diversification efforts. |
LO 6.2 | How managers can create value through diversification initiatives. |
LO 6.3 | How corporations can use related diversification to achieve synergistic benefits through economies of scope and market power. |
LO 6.4 | How corporations can use unrelated diversification to attain synergistic benefits through corporate restructuring, parenting, and portfolio analysis. |
LO 6.5 | The various means of engaging in diversification—mergers and acquisitions, joint ventures/strategic alliances, and internal development. |
LO 6.6 | Managerial behaviors that can erode the creation of value. |