Question: Why does diversification often fail to boost profitability? The sheer number of businesses in the diversification make managing them unreasonable. The benefits created by the
Why does diversification often fail to boost profitability?
The sheer number of businesses in the diversification make managing them unreasonable.
The benefits created by the strategy are exceeded by the bureaucratic costs of diversification.
Dediversification can often occur as a result of the company's efforts.
Corporate diversification is not an effective way to pool risks.
Entry into new industries cannot rescue a core business that is in trouble.
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