Companies that pursue related diversification strategies through internal development make greater use of interdivisional transfers of people than do companies that grow through unrelated acquisitions.

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Companies that pursue related diversification strategies through internal development tend to have a greater focus on developing and utilizing the skills and expertise of their existing workforce, which may involve transferring people between divisions to share knowledge and best practices. In contrast, companies that grow through unrelated acquisitions may not have the same level of emphasis on internal development and may rely more on external hires to fill skill gaps, making interdivisional transfers less common.

Companies That Pursue Related Diversification Strategies Through Internal Development Make