Topic

Diversification

Instructions

What might encourage Diversification? What incentives and resources encourage diversification?

Answer Preview

Diversification is simply defined as growing into new business areas related or unrelated to the existing form of business in a firm or organization. It is done strategically as entering a new market where one had not ventured before is very risky. This is risky because the firm has no experience in the new market and does not know if the product is going to be successful.

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