TO BE... OR NOT TO BE... DIE-VERSIFIED!
FROM HAMLET TO HAMMEL, THE CORE DILEMMA HAS CONFOUNDED MANY
For decades, right from management schools to board rooms, people have been perplexed about the issue of whether to focus on a few core businesses, or to rambunctiously diversify. And the answer? If you are worried about shareholders’ value, “Diversify!” Well, that’s what exhaustive industry researches this bright side of the century have proved. Unbelievably, from 2003 till as early as a year back, those were conglomerates that added more to aggregate shareholder value in India than core companies. Market capitalisation of diversified companies increased by 183% during that period.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
For decades, right from management schools to board rooms, people have been perplexed about the issue of whether to focus on a few core businesses, or to rambunctiously diversify. And the answer? If you are worried about shareholders’ value, “Diversify!” Well, that’s what exhaustive industry researches this bright side of the century have proved. Unbelievably, from 2003 till as early as a year back, those were conglomerates that added more to aggregate shareholder value in India than core companies. Market capitalisation of diversified companies increased by 183% during that period.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
Rashmi Bansal Publisher Of JAMMAG Magazine Caught Red-Handed, for details click on the following links.
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