What are three reasons firms choose to diversify their operations?

1. What are the two ways to obtain financial economies when using an unrelated diversification strategy?

2. What incentives and resources encourage diversification?

3. What motives might encourage managers to over diversify their firm?

 

Do you think a $24 million investment in a private satellite communication system could be justified by a cost-benefit analysis? Could this be done with a standard communication line

1. What are the different levels of diversification firms can pursue by using different corporate-level strategies?

2. What are three reasons firms choose to diversify their operations?

3. How do firms create value when using a related diversification strategy?

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