In the 1920’s DuPont was best known as the manufacturer of
explosives and demolition technology. It
managed to leverage its knowledge of chemicals used in explosives to branch
into fields of chemical products such as paints and fertilizer. At that time, companies that were capable of
diversifying and growing its product portfolio were more likely to adopt
corporate diversification strategies.
The need arose from companies needing a corporate structure to
complement their business strategy of diversification. What came from this need was the beginning of
multi-divisional corporate structuring.
http://en.wikipedia.org/wiki/Multi-divisional_form
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