April 2005
Background Note
HBS Case Collection

Strategies of Unrelated Diversification

By: Bharat N. Anand and Samhita Patwardhan Jayanti

Format:Print
| Pages:9

Abstract

Conglomerates lie at the heart of debates in corporate strategy. They include, perhaps, the best known companies in history--Beatrice Corp., General Electric, ITT, Siemens, and ABB--and at various times over the last few decades have been both admired and vilified as a form of corporate organization. Regardless of the time at which these debates have occurred, they invariably focus on a few common questions, which this note addresses: Why do conglomerates exist? Do they add value to their component businesses? If so, how?

Keywords

Diversification; Business Conglomerates; Corporate Strategy; Value

Citation

Anand, Bharat N., and Samhita Patwardhan Jayanti. "Strategies of Unrelated Diversification." Harvard Business School Background Note 705-480, April 2005.