Question

why do companies decide to diversify? what are two each of the positives and negatives of diversification?

Answer 1

Diversity is a change of life from the ancient time

when Charles Darwin give his theory he said that the person or the society which is adaptable to the change will only survive

also in today's competitive world if the company wants to stay ahead of the others then they have to create an edge

diversification can be an important tool for doing this diversity can be in the form of work culture, working environment, a different set of peoples, etc

The positivity of diversification are

1. It helps companies to survive in the long run in this cut-throat competition market

2.It will have a different set of peoples coming from different backgrounds and can be helpful company growth

Negativities of diversification are

1.Due to the diverse nature or different background, there is a very high chance of conflict between the parties or between employees who are working in the company

2. Diversification can sometimes lead to failure in the market also. so proper analysis should be done before it