Creating added long$-$term value for shareholders via diversification requires

building a multi$-$business company where the whole is greater than the sum of its parts$--$such $1+1=3$ effects are called synergy.

boosting the company's long$-$term prospects for above$-$average increases in total revenues, stock price, and earnings per share.

lowering the company's overall operating costs, an enhanced company image, and increased prospects for market share leadership in two or more of the company's businesses.

sizable increases in the company's annual rate of growth in revenues and total profits.

entering businesses which employ the same basic type of competitive strategy.