Pick a company that has either, in your view, been too unfocused or one that been so afraid to venture from its core business that it has missed clear opportunities for diversification (US Company only)
Pick a company that has either, in your view, been too unfocused or one that been so afraid to venture from its core business that it has missed clear opportunities for diversification (US Company only). In a short (2-3 page) memo addressed to the CEO, and playing the role of a strategy consultant, address the issue of focus (too much, too little) and the costs or missed opportunities that you think have been a source of lost value. Advise the CEO on a better way to think about “sticking to his core or going for more.”
It is important not to overrun your page limit. This is an executive memo. Do not ask the CEO to indulge you; tell him/her precisely and efficiently what he or she needs to know.
It is very important to read the attachments I have provided for the memo.
Also, answer these questions and please feel free to use them as a reference answering the questions.
What is the logic behind a related diversification?
What are the risk factors that lead executives to justify them when the actual logic would otherwise fail?
Why do you think they often fail their shareholders?
What is the far more tenuous logic of an unrelated diversification?
Why are they even more often a financial failure?
What are the exceptions to that rule?
P.S. Work will be checked for plagiarism.
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