Diversification Strategies

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Diversification Strategies
BUS 508 Contemporary Business
Seena S. Nelms
Strayer University

Diversification Strategies What is diversification? According to the Merriam-Webster Dictionary online, diversifications means to produce variety or to engage in varied operations. Diversification is a strategy that takes companies into new markets with new products and services to increase their profitability. Some corporations have diversified and succeeded, while other have tried but failed. Today Sara Lee Corporation is a global manufacturer and marketer of brand-name products for consumers globally focused primarily on the meats, bakery, beverage and household products categories. Once known as Consolidated Foods
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Both AOL and Time Warner were successful in their own right before the merger. The companies together had approximately 85,000 employees. Their global presence was one that was and still is well known. The acquisition valued at $350 billion and is still the largest merger in American business. But this marriage was not one made in media heaven.
AOL Time Warner diversified because of synergy, it was designed to save money and make money. But the confidence in the merger was brief. According to The New York Times (2010), “the dot-com bubble began to burst and online advertising began to slow, making it difficult for AOL to meet the financial forecasts on which the deal was based. The world began moving quickly to high-speed Internet access, putting AOL’s ubiquitous dial-up service in jeopardy”. I think the merger failed because the two cultures didn’t align properly. But it was said in an article by Tim Arango of The New York Times (2010) that Don Logan, head of Time Inc., Ted Leonsis, a division president at AOL and Timothy Boggs, head of government relations at Time Warner at the time of the merger, didn’t approve of the merger. It was also said that Mr. Boggs thought that AOL was opportunistic people, who were trying to exploit the market they were in as opposed to developing something that was enduring.
Some businesses are successful in diversification while others are not. I think the reasons

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