Tuesday, May 5, 2015

Ch. 11 Corporate Diversification


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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