Question: Moreover, any diversification is going to complicate operations so we shouldn't think that related diversification will somehow simplify them. We could leverage our brand across

Moreover, any diversification is going to complicate operations so we shouldn't think that related diversification will somehow simplify them.

We could leverage our brand across similar industries.

There's a potential for economies of scope to spread costs across multiple business units.

It might help diversify our human capital.

We might be able to create specialized resources for a given product or business by spanning related industries.

We would simplify our operations.

Rachel

I want us to come to this decision together. So I compiled this list of what we do well.

Rachel

Considering our strengths, should we be thinking about unrelated diversification or related diversification?

Handouts

Cozy Cotton Strengtl

Strong Brand Name

"Comfortable

All your clothi

Marketing Compete

75 %

of sales

Strong social I

Excellent Leadership

Work well toge

Great industry

Good internal

Strong Balance Shee

Low debt ratios

Large cash res

Private Ownership

60 %

of the stoc

Minority shareh

Robust Supply Chain

Consistent deliv

Loyal partners

Unrelated

Submit

Moreover, any diversification is going to complicate operations so we shouldn't

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