Question

Yahoo’s peanut butter manifesto and economies of scope in diversification

Answer 1

Yahoo's peanut butter manifesto is an internal memo written by Yahoo's SVP to express his dissatisfaction for the spread and unfocused approach of the company. He urged the company to have clarity on work. Thus the peanut butter manifesto as it commonly refers to now is an advocacy for focussing on the core and specialised work of the firm and not so much everywhere.

In contrast to this, economies of scope tell us that there may be economic factors by which simultaneous works can be done in a cost-effective way compared to if they are done altogether in isolation. Thus diversification is cost effective.

Both the ideas have context and can be applied as per the situation and nature of the company and work.

answered by: anonymous