Question

Image you are working for a large company. The boss is considering diversification and comes for your advice. What would you advice? Under what conditions does diversification make sense, not make sense? What decision concretion would you recommend to a company considering diversification? What conditions would you recommend before diversification?

Answer 1

I will advice the boss to take diversification seriously depending upon the position of the organization in the industry and also the location and field of industry in which the organization works. Anyways diversification is an important aspect and needs to be practiced by organizations in any circumstances because it provides with various options to the organization that they can avail. As conveyed diversification makes sense when the organization is large and may demand the same in the industry. An organization exhibiting diversification should consider certain factors because in order to be successful the organization has to possess feasible conditions so that they can accommodate diversification without initiating conflicts in the organization. If the organization has not encouraged diversification previously, then it needs to understand the changes that the organization needs to go through in order to be successful. Implementing such changes have to be in sync so that it is successful.