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Portfolio Management

S/F/49. ‘Synergy is the only justification for a firms diversification. Discuss.

WORDS:
3000
DATE:
2005
PRICE:
39.99 GBP

Due to the rising significance of diversification, it is vital to fully understand the reasons and justifications for diversification. Many scholars hold the view that the concept of synergy is the main, if not the only justification for diversification activity. But is synergy really sufficient enough to justify companies to diversify their business? This essay attempts to discuss whether synergy is the only justification for diversification. For reason of world limitation, it will discuss the topic only from a strategic perspective. However, the conclusion will briefly comment on the justifications for diversification viewed from a managerial perspective.

 

KEYWORDS: f, â, synergy, justification, firms, diversification, discuss,

 
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