Under What Circumstances Might an Already Diversified Company Choose to Enter

question 83

Essay

Under what circumstances might an already diversified company choose to enter additional businesses and broaden its diversification base?

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Definitions:

Bureaucratic Control

A system to manage an organization through a set of formal rules and procedures to ensure efficiency and effectiveness.

Organizational Interests

Encompass the aims, goals, or objectives that an organization seeks to achieve.

Clan Control

An approach to management and organizational control that relies on cultural norms, values, shared goals, and informal relationships rather than formal rules.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.