Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217803 
Authors: 
Year of Publication: 
1982
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 13 [Issue:] 3 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1982 [Pages:] 118-120
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract: 
The view is widely held in the literature on business policy that not only does structure follow strategy, but that size (measured in terms of turnover) and diversification strategy are closely correlated. This paper examines the relationship between degree of diversification and sales turnover of several South African listed companies which undertook diversification strategies between 1970 and 1976. The results show that there is no significant correlation between turnover and degree of diversification among these companies. Both small and large firms are seen to have similar degrees of diversification. The findings suggest that firms should avoid diversifying into several different markets while having a relatively small market share in each, as both managerial and financial resources then become too thinly spread. Such companies are likely takeover candidates in recessionary periods.Daar is 'n algemene siening in die literatuur oor bestuursbeleid ('business policy'), naamlik dat struktuur nie slegs op strategie volg nie, maar dat grootte (gemeet in terme van omset) en diversifiseringstrategie sterk korreleer. Hierdie artikel ondersoek die verhouding tussen graad van diversifisering en verkoopomset van verskeie Suid-Afrikaanse gelyste maatskappye wat tussen 1970 en 1976 diversifiseringstrategiee beoefen het. Die resultate dui aan dat daar geen betekenisvolle korrelasie tussen omset en graad van diversifisering in hierdie maatskappye was nie. Klein sowel as goot maatskappye toon volgens die navorsing soortgelyke vlakke van diversifisering. Die bevindings dui aan dat maatskappye diversifisering in verskeie markte behoort te vermy as hulle slegs 'n klein markaandeel in elk sou he, omdat bestuurs- sowel as finansiele hulpbronne dan te yl versprei word. Sulke maatskappye is waarskynlike kandidate vir oornames in tye van regressie.
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Document Type: 
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