Pick a Middle East (preferably KSA) company whose strategy includes or included diversification. Explore its motives, competitive advantage, and strategic planning based on the topics from Chapter 11&12 of your textbook. Answer the following questions as per your own understanding.
- Find out and discuss the primary reasons that prompted the company to diversify. Be specific in your discussion of the same with suitable examples (if possible). (30 marks)
- What mode of diversification did the selected company adopt? How is it related to its resources and capabilities? (30 marks)
- Discuss the pros and cons of diversification for the company as well as the industry with suitable examples. (30 marks)
- For diversification to create shareholder value, it must meet three tests: The Attractiveness Test, The Cost of Entry Test, and The Better-Off Test. Apply these tests to the selected company and discuss.
0 comments