For diversification to be a successful management strategy, it must

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Diversification is a strategy to spread the business risk and maximize the returns by investing in different sectors. To be successful, diversification must add value to the overall business. It should create synergy and enhance the competitiveness of the business. Generating accounting profits or earning normal profits is not necessarily the only metric to measure the success of diversification. Protecting market share may be one of the objectives of diversification, but it is not a sufficient condition to ensure success.

For Diversification to Be a Successful Management Strategy, It Must