Experiences In The Business World

In the past few decades, the business environment has been characterized by high level of
risk and uncertainty following the global financial crisis and the political instability in most
countries. On the one hand and the drive to maximize shareholder wealth on the order hand.
This has led to many corporate organizations to adopt diversification strategy as a means to
survival and attaining sustainable competitive advantage. Andrew (1951) cited in Ibrahim
and Ihsan (2011) believes that corporate entity operating with such strategy (diversification)
can gain advantage over entity operating in the same Sector. In the same vein, Kotler and
Armstrong, (2008) pointed out that for an entity to survive in an environment characterized
by uncertainties, their strategies should be that which focus on the minimization of risk and
maximization of profit. The firm can achieve this by diversification. In line with this view,
Hakrabati (2007) opine that corporate strategy is a key determinant for survival in highly
competitive market, turbulent environment and sustained growth and profitability.