Unrelated Diversification

Unrelated Diversification
Problems in Unrelated Diversification
Diversification Discount

Unrelated Diversification
Discount- pre existence
Discount not common across time periods, countries, firms

Unrelated Diversification
Functioning of Markets and the role institutional context
Firms Corporate Strategy Organizational Processes alignment of
choice of business and ownership structure

Effectiveness of Conglomerates
Conglomerates in the USA- 1940-75
Private Equity Firms
Business Groups
Present Day Conglomerates
Alignment of Organizational Processes with Choice of Business
Alignment of Initiatives with each other
Alignment of Ownership Structure