Posted: March 7th, 2014

The authors of our textbook argue that “…clearly, not all diversification moves, including those involving mergers and acquisitions, erode performance.”

The authors of our textbook argue that “…clearly, not all diversification moves, including those involving mergers and acquisitions, erode performance.” Diversification is achieved through two methods: 1) through horizontal relationships, and 2) through hierarchical relationships. The benefits of these two relationships are mutually exclusive.

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