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Rumelts Theory of Diversification Free Essay, Term Paper and Book Report

EXECUTIVE SUMMARY Rumelt's categorical measures of diversification are an imperative approach in business strategy setting. Rumelt is one of the scholars in 1970¡¦s who greatly contributed in organization strategy and business diversification. This paper will incorporate the scholar¡¦s theory of diversification and its criticism. Studies have shown that firms¡¦ performance may be demonstrated using Rumelt¡¦s argument though some hypothesis may be rejected like that one of performance differences after continuous research findings. Also hypothesis linked with distinct low and distinct high performance have also found their basis in the substantial differences in the variables that determine a particular firm¡¦s market structure. The paper will look at diversification strategy as outlined in Rumelt¡¦s theory. It will also look at the criticism and support that the theory has received and look at real applications of diversification by different firms (Kay 2000, P. 287). INTRODUCTION The relationship that exist between diversification and firm¡¦s performance ......

Word Count: 3668
Page Count: 14.6  (250 words a page / double spaced)

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