search query: @indexterm diversification / total: 686
reference: 348 / 686
| Author: | Hohn, C. |
| Title: | Make up or break up |
| Journal: | Management Today
1990 : JAN, p. 70-73 |
| Index terms: | MERGERS DIVERSIFICATION |
| Language: | eng |
| Abstract: | Dissolving diversified groups of companies is now fashion. But strong evidence and arguments in favour of diversification may well bring this strategy back into vogue again. In the 1960s and '70s famous corporations were built up by acquiring companies in diverse industries. The logic behind the strategy was to grow in size but at the same time reduce the high business risk of a company operating in a single, often mature, marketplace. In the 1980s, however, divestments and refocusing on core businesses occured. This was justified by lack of financial control and managerial focus. Yet some new evidence shows conglomerates to be more profitable than diversified shareholdings. |
SCIMA