"When talking about an organization and diversification it is important to understand what diversification is and how companies implement this idea and the planning that goes behind it. Diversification is a company that operates in 2+ industries to increase the value of their products and to increase long term profits. A company will implement a plan like this when they have more resources than they are using so they do not stretch themselves too thin. Companies who diversify when they do not have the necessary amount of resources create unnecessary risk. When looking at when it makes sense besides having excess resources you will also want to make sure the timing is right when making this decision. One theme across this course is to make well-planned decisions rather than making the decision for the sake of making the decision. If you have enough resources you can make this decision properly by combining two forms of Marketing and Sales for each industry you work in like Philip Morris did with their Tobacco and Brewing Industry which was the example in this book. Diversification was key in their attempt due to the tobacco industry not holding up in today's day in age as it did 50 years ago. An example people could use in their personal life would be if you are carrying a stock portfolio. You would rather have your money in 20 different companies than 2 so you can mitigate the risk factor if one of those companies tanks. You can apply the same thought process to companies in different industries."

Return to the board and read over the posts of other students. Choose the post of at least one other classmate and create a post responding to his/her initial post on the Discussion Board.

This post should (1) acknowledge the classmate's post by paraphrasing their point (even if you disagree), (2) build on that idea by offering your own thoughts, and (3) continue the conversation by posing a question that others can answer.