In: Operations Management
General Electric, Berkshire Hathaway, and Richard Branson’s Virgin Group each compromise a wide range of different businesses that appear to have few close technical or customer linkages. Are these examples of unrelated diversification? For each of the three companies, can you identify linkages among their businesses such that bringing them under common ownership creates value?
Some of these products are very much relatable to other companies which are direct examples of unrelated diversification. This type of approach help companies to grow more productively into different market segments and to explore new markets for getting better revenues. It also affects the overall working capabilities of the organisation as these organisations have a great supply chain and very intuitive working environment.
General Electric, Berkshire Hathaway find Richard Branson's virgin group has similarity in different market segments such as Aerospace market segment. All of the three companies operate in this specific segment and have a very similar Marketplace. This type of approach is present in each and every organisation and they operate with similar companies for the Aerospace business. This type of ownership of these specific businesses create grate value for the organisations.