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Corporate-Level Strategy: Creating Value through Diversification
Overview:
This chapter expands on the discussion of strategy to focus on corporate-level strategy and how to create value through diversification. While diversification should create value for a corporation’s shareholders and enable synergy, this chapter discusses the reasons why diversification efforts may fail. However, corporations can achieve success through utilizing unrelated diversification to attain synergistic benefits through restructuring, parenting, and portfolio analysis. Diversification can be achieved through a variety of means, including, mergers and acquisitions, joint ventures/strategic alliances, and internal development.