The logical sequence for implementing corporate diversification follows a structured strategic management process.
D. Identify core competencies and market opportunities – This is the starting point. The firm must first assess its internal strengths (core competencies) and analyze external opportunities in potential markets.
E. Select diversification strategy – After identifying opportunities, the firm chooses the appropriate diversification strategy (such as related or unrelated diversification).
C. Design appropriate organizational structure – Once the strategy is selected, the organizational structure must be aligned to support it (for example, a multidivisional structure for diversified firms).
A. Allocate resources and authority to divisions – After structuring, resources (financial, human, technological) and decision-making authority are distributed to the relevant divisions.
B. Establish coordination and monitor performance – Finally, systems for coordination, control, and performance monitoring are implemented to ensure strategic objectives are achieved.