1. CORPORATE STRATEGY (DIVERSIFICATION)
RELATED – STRATEGIC FIT, “THEME”
UNRELATED (What is theme?)
VERTICAL
HORIZONTAL

2. DIVERSIFICATION Motives to Strengthen Competitiveness
SHARING ACTIVITIES
TRANSFERING CORE COMPETENCIES
BLOCKING COMPETITORS
VERTICAL INTEGRATION
EFFICIENT INTERNAL USE OF CAPITAL
BUSINESS RESTRUCTURING
FINANCIAL
ORG. DESIGN

3. DIVERSIFICATION Neutral Effects?
ANTI-TRUST REGULATION
TAX LAWS
LOW PERFORMANCE
UNCERTAIN FUTURE CASH FLOW
RISK REDUCTION
TANGIBLE, INTANGIBLE RESOURCES

4. DIVERSIFICATION “Managerial” Motives?
DIVERSIFY MANAGERIAL EMPLOYMENT
INCREASING SALARY