Please respond to at least one of the following questions. Do not reiterate what was stated before!
1. When is a company likely to choose (a) related diversification and (b) unrelated diversification?
2. What factors make it most likely that (a) acquisitions or (b) internal new venturing will be the preferred method to enter a new industry?
3. Imagine that IBM has decided to diversify into the telecommunications business to provide online cloud computing data services and broadband access for businesses and individuals. What method would you recommend that IBM pursue to enter this industry? Why?
4. Under which conditions are joint ventures a useful way to enter new industries?
5. Identify Honeywells (www.honeywell.com) portfolio of businesses that can be found by exploring its Website. How many different industries is Honeywell involved in? Would you describe Honeywell as a related or unrelated diversification company? Has Honeywells diversification strategy increased profitability over time?