Discussion post 3

Explain the different levels of diversification.

• Explain what it means to create economic value. Explain what it means to add value through diversification (see Figure 6.1). Are these two things the same? Is one a subset of the other? If I'm a shareholder of two different companies, why might I want them to merge?
• What are the six Ss?
• Can value be added in the same way regardless of the type of diversification? Or are there better ways to add value depending on the type of diversification involved?
• What does it mean to destroy economic value? Give you provide a specific example?
• What are the methods of diversification?