Understanding Diversification

1. Look in The Wall Street Journal, Businessweek, or other business publication and find a company looking to expand through diversification—either greenfield entry or acquisition. What type of diversification does this represent?

2. How do managers claim they will create value through diversification? Using the eight Ss described in the chapter, evaluate how well you believe the company will do in its value creation strategy. For example, are there real synergies or core competencies to create? Do the businesses share a similar dominant logic?