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Diversification Strategy
Book

Diversification Strategy

How to grow a business by diversifying successfully

Kogan Page, 2009 más...


Editorial Rating

8

Qualities

  • Innovative

Recommendation

When a company fails, diversification is more likely to get the blame than concentration. Running multiple businesses is supposedly more dangerous than operating just one. But focus is overrated. With proper management, business diversity can deliver excellent investment returns. So says corporate strategy planner Graham Kenny whose book lists seven steps that “successful diversifiers” follow. Blending practical information with meaty, real-life examples, Kenny illustrates how notable conglomerates, such as General Electric, exercise the discipline that successful diversification demands. Although the book lacks some of the finer details you’d need to apply Kenny’s diversification program, getAbstract recommends this clear volume to business managers who want a research-based framework for assessing diversification opportunities.

Take-Aways

  • Focused companies have been in vogue for decades, but firms that fail to diversify their business may leave their shareholders feeling poorer.
  • General Electric, Bidvest, ITC and Wesfarmers are highly successful diversified firms. But Warren Buffett’s Berkshire Hathaway does not optimize its position as a diversifier.
  • Effective diversified companies follow seven steps:

About the Author

Graham Kenny is the managing director of Strategic Factors, an Australian firm specializing in strategic planning and performance measurement.


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