Abstract: Corporate diversification is one of the fundamental strategic alternatives available to organizations to sustain growth and search for greater profits. Companies whose products are threatened by the environmental uncertainty or in decline phase of their life cycle curve can prefer to engage in diversification to overcome the risk arising from current industries. Expanding its product line and activities to different sectors where the environmental uncertainty is reduced and, profitability is higher, a company may confirm its survival which will make its cash flow more reliable. Utilizing case study research design, the research sought to establish the influence of unrelated diversification strategy components on corporate performance of Sameer Group in Kenya. Stratified random sampling technique was used in selecting the sample for the study. The main data collection instrument for the study was questionnaires. Findings indicated that the general economic environment, efficiency view, firm characteristics and co-insurance effect were significantly related to corporate performance.
Keywords: Corporate performance, Diversification, Unrelated diversification, Strategy
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