MGMT 650 QUESTION WORK ASSIGNMENT 8 Organizational scope is often considered in terms of related and unrelated diversification. Explain? MGMT 650 QUESTION CASE STUDIES 8 1. What should the future...

1) It is a fact that organizational scope is often considered in terms of related and
unrelated diversification. Diversification and diversity management are the two most
important aspects in terms of broadening organizational scope. It must be noted that the role
of diversification in both operation and marketing strategies deserve special mention.
Horizontal or related diversification is essential to broaden the scope of an organization. This
can be argued by citing the fact that to broaden the organizational scope sometimes it
becomes necessary to add related or similar product/service lines to existing core business,
and this is done either through acquisition or competitors or through the process of internally
developing new product or services (“Diversification Strategy”, n.d.). Horizontal or related
diversification enriches organizational scope by creating opportunities for achieving
economies of scale and scope and by creating opportunities to “expand product offerings or
expand into new geographical areas” (“Diversification Strategy”, n.d.). But it must also be
noted that related diversification may also create some problems including the complexity
and difficulty of coordinating businesses that are different but are related...