Question

Diversification Why might an organization choose to diversify? Provide an extensive explanation. Please provide an example of an organization

that has followed a diversification strategy

Answer 1

Diversification is the way to reduce the risk of business. To survive in modern competitive world diversification is very much necessary. That's why organization does diversification.

P&G is a perfect example of business diversification. They have products which has brands like Ariels,Tide which does cleaning and it has products like Pampers for babies and Gillette. So, they have product in the for cleaning,shaving, beauty products etc.

So, P&G has followed diversification strategy.