Newell, the maker of a range of household and office products, acquired Jarden that made a range of similar household products.

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Newell, the maker of a range of household and office products, acquired Jarden that made a range of similar household products.

The combined firm lost significant sales and destroyed a significant amount of shareholder value. This is an example of a failed diversification effort.

Business

1 answer:

ra1l [238] · Answer 1 · 2023-09-10T09:10:12+03:00

It is true that when the combined firm lost significant sales and destroyed a significant amount of shareholder value is an example of a failed diversification effort.

<h3>What is a failed diversification effort?</h3>

A failed diversification effort refers to a situation whereby the attempt to diverify the firm failed, leading to a loss.

The main reasons that diversification fails is because the businesses do not have the right strategy in place.

In conclusion, the firm has experienced a failed diversification effort because of the failure.

Read more about failed diversification effort

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