Diversity - The Key to Prosperity for an Internatinoal Service Company

DIVERSITY There are plenty of examples to show that diversity has been the fundamental downfall of many organisations, particularly when you consider the international position. What about core business, the return of companies to key competence directions and market focus. The stockmarket for instance defines groups and companies in key groups of core business. The expectation is that companies toe the line and do not diversify across their areas of defined expertise. In essence, the market has given notice that the requirements are to focus and stick to our core business. So what right does the conference have to suggest that diversity is the key to prosperity. Hasn't the organiser read the book, studied the history, listened to the market - obviously not. Have they got it wrong, My feeling and belief is no - the organisers have got it right. However, the matter is not as simple as first perceived. What is Diversity, or Diversification as I would prefer? Is it a product position? Is it a geographic position? Is it an expansion or change in services offered? Does a gold mining company diversify into copper or diamonds or aluminium or nickel? Does a gold miner in Australia diversify into China or Kazakhstan or West Africa? How do the two relate? They don't. A successful company will always possess a 'core competence' not so much a 'core business'. The best example of this is the service company extraordinaire - McDonalds. They don't sell hamburgers or french fries, they sell a service, a convenience, a lifestyle. The core business is hamburgers and if McDonalds were to diversify further into new styles of hamburgers, I suggest to you they would fail. But if McDonalds were to diversify into other products based on their 'core competence', provision of service, then I would suggest to you they would be very successful. The service procedure, service machine, service system, the formula, stava the rnnetant the nrnrlnrte -