When a firm becomes highly diversified through acquisitions, managers often focus on financial controls rather than on strategic controls.

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When a firm becomes highly diversified through acquisitions, managers may focus more on financial controls (such as cost cutting and financial performance metrics) rather than on strategic controls (such as developing and executing a clear business strategy). This is because financial controls can provide a quick and tangible way to measure success, whereas strategic controls may take longer to implement and show results. However, it is important for managers to balance both types of controls to ensure long-term success and growth.

When a Firm Becomes Highly Diversified Through Acquisitions, Managers Often