Issues of 1993: ways to manage diversity

Many firms that attempted to become "one-stop" financial product and service providers have failed in this effort and are returning to a focus on their core businesses. However, for firms in industries like property/casualty and life/health insurance, where business is declining and the ma...

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Bibliographic Details
Published in:Best's review (Life-health insurance ed.) 1993-01, Vol.93 (9), p.30
Main Authors: Sippel, Erich W, McDonough, David M
Format: Article
Language:English
Subjects:
Corporate objectives
Crawford, Richard D
Evans, Philip
Financial institutions
Financial Service Centers
Hamel, Gary
Insurance companies
Prahalad, C.k
Shulman, Lawrence
Sihler, William W
Stalk, George
Strategic planning
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Summary:Many firms that attempted to become "one-stop" financial product and service providers have failed in this effort and are returning to a focus on their core businesses. However, for firms in industries like property/casualty and life/health insurance, where business is declining and the market is mature, diversification may still be the best strategy. Companies that diversify must handle the changes that are altering the financial services industry and regroup so that the financial value of the total organization exceeds the sum of its components. Diversified firms must be committed to innovation and performance measurement, develop strategic imperativies, identify skills and assets, and allocate these assets to the company's competitive advantage. Diversified firms should regularly reassess environmental trends, customer needs, compatibility of business units, and alternative ways of earning profits.
ISSN:0005-9706