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| Author: | Mottur, A. |
| Title: | Making the decision to diversify into financial services. |
| Journal: | Journal of Business Strategy
1987 : SUMMER, VOL. 8:1, p. 13-20 |
| Index terms: | CORPORATE FINANCE FINANCIAL MANAGEMENT DIVERSIFICATION RISK USA |
| Language: | eng |
| Abstract: | The contrasted examples of General Motors and Armco Inc. are presented. While the profit of GM's financial services rose 21,5 percent a year between 1977 and 1986 Armo's financial services lost 345 million dollar between 1982 and 1984. In the diversification effort companies should not adopt an attitude of "it can't happen to us". The consequences of a poorly timed or ill-considered diversification, as in case of Armo, can be catastrophic. Finally, the future perspectives of financial services are considered. |
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