Death of Diversification The Focusing of the Worlds Industrial Firms 1980-2000 Harvard Case Solution & Analysis

1990 industrial companies in the world turn away in droves from the strategy of product diversification. The reasons for this change include the recognition of poor performance highly diversified firms, the trend to a solution framework based on market allocation of resources among different activities, and the growth of institutional shareholders that demand performance and clarity. This development will continue to increase the intensity of the global industrial competition, which requires managers to handle, thinking more about the multi-national, multi-disciplinary than expansion. Will the few remaining highly diversified conglomerates and corporate holdouts remains a strategically viable? And what will happen to companies that persist in diversifying outside their core industries, despite all the evidence? "Hide
by Lawrence G. Franco Source: Business Horizons 10 pages. Publication Date: July 15, 2004. Prod. #: BH106-PDF-ENG

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