Over dinner with a seasoned businessman, a friend suggested the services of a business consultant who had a reputation of improving corporate profits
The young consultant studied the business over the next few weeks & recommended 3 new businesses to get into
A thread (1/n)
The young consultant studied the business over the next few weeks & recommended 3 new businesses to get into
A thread (1/n)
Many years passed. The friend caught up with the businessman & asked : Hey, did that consultant help you improve profits?
The businessman replied : “Yeah somewhat”
What do you mean?
“Earlier 100% of my profits used to come from my core business. Now it gives me 150%” (2/n)
The businessman replied : “Yeah somewhat”
What do you mean?
“Earlier 100% of my profits used to come from my core business. Now it gives me 150%” (2/n)
The term “diworsification” is used to describe the over-expansion of a company into new growth projects & businesses they do not fully understand and are not in alignment with the company’s core competencies
E.g. AOL-Time Warner , Microsoft-Nokia, Videocon in telecom etc.
(3/n)
E.g. AOL-Time Warner , Microsoft-Nokia, Videocon in telecom etc.
(3/n)
Cosmo Films is a 40-year company into films for packaging, labels, lamination & industrial applications
A recent investor presentation (Nov 2020) explains their intent to diversify into the pet care business
A case for diworsification? 🤔
A recent investor presentation (Nov 2020) explains their intent to diversify into the pet care business
A case for diworsification? 🤔
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