Friday, June 8, 2012

Matt Sileno Richard Rumelt



Financial theory would say that companies diversify to reduce risk, but in the business world diversification is done not to hedge risk but to sustain top-line growth. The riskiest companies-the start-ups and early-stage companies-are intensely focused. Companies begin thinking about diversification only when their growth has plateaued and opportunities for expansion in the original business have been depleted.










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