2018 was a tough year for several diversified companies, witnessing several breakups. Examples of large companies witnessing breakups or spinoffs include the likes of Kraft, Alcoa, HP, AP Moller- Maersk and Siemens. This is a trend long foreseen by experts in the fields of finance and corporate strategy. They predicted the doom of ultra- diversified companies. They have argued for divestiture whenever the businesses within a portfolio do no correspond with one another. However, before jumping into the bandwagon and calling the concept of conglomerates as dead, one has to look at several of them, still thriving. The Mahindra Group and Alphabet are such examples.

Source:https://sloanreview.mit.edu/article/a-new-playbook-for-diversified-companies/

Uploaded Date:31st December 2018