Using the three tests for diversification, how does the Walt Disney Company fair within these elements? Be sure to justify your responses with evidence.

A proposed diversification move should pass three tests or it should be rejected. 1. How attractive is the industry that a company is considering entering? Unless the industry has strong profit potential, entering it may be very risky 2. How much will it cost to enter the industry? Executives need to be sure that their company can recoup the expenses that it absorbs in order to diversify. When Philip Morris bought 7UP, it paid four times what 7Up was actually worth. Making up these costs proved to be impossible and 7UP was sold sixteen years later. 3. Will the new unit and the company be better off? Unless one side or the other gains a competitive advantage, diversification should be avoided. In the case of Philip Morris and 7UP, for example, neither side benefited significantly from joining together