Strategies for Managing

However, there is an opposing side, which argues that diversification of a business is not a rational move at all. A diversification move can amply change the frameworks, cultures, and job prospects of the organization such that they cause organizational members to experience stress, anger, disorientation, frustration, confusion, and even fright.

Markets are shifting, today's competitor is tomorrow's collaborator, and products and services are developed and sold in time. Managers and even the entire management are now spending too much time in forecasting, analyzing, and measuring strategies for a fuzzy guess at what would be the enough strategy to apply. Thierauf and Hoctor (2006:264) have noted that among the commonly used business strategy to improve the competitive advantage as well as the survival of an organization is diversification.