Should the Group invest in expanding its original core businesses of auto and parts

manufacturing, financial services; insurance and asset management and trading versus
entry into new lines of business? If new business, then what strategy should the Group
adopt?
The Group should focus on expanding its core businesses rather than entering into a new line of
business. The competencies required for the core businesses are already developed. The Group
also needs to meet the market demand at present. Therefore, it needs to invest further in
expanding its core business. The reason for such a decision is due to the bad experience of Atlas
Bank, which led to disinvestment. For core businesses, the Atlas group follows the business
principle, which is caution rather than haste, but Atlas Bank, which is not the core business of
Atlas group, did not follow the traditional approach, which is expanding gradually instead, they
did aggressive expansion. In the Atlas Bank case, the Group deviated from its core strength, and
there were inconsistencies among HR policies pursued in the recruitment, compensation of the
Bank and the Group HR philosophy and culture. The policy environment was not suitable which
compelled the Group to exit from the banking sector and focus on the already existing core
businesses. The Group should oppose the idea of over diversification of a business, especially
where there was a lack of compatibility with the Group’s indigenous culture and expertise.
Diversifying into a non-core business is a risky decision and there is no need for over-
diversification by entering into a new business line. If Atlas group wants to start new business
then the Group’s traditional and successful conservative and step-by-step approach would have
been more advisable.