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,
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