Effects of Diversification on Culture LO25230

From: Udy David-Adjah (udy@coscharis.com)
Date: 08/28/00


Replying to LO25125 --

Dear Steve,

Thanks for your contribution.

The diversification I was referring to here is in terms of economic
diversification. Where a company diversifies from one line of business to
another. For example where they were selling car spare parts before they
now decide to move on to selling whole cars, while still maintaining the
spare parts business. This will entail new infrastructure, new personnel
and maybe new management.

The question now is, how will these changes affect the culture of the
company? Will it affect their attitudes, values and the way they do
things? If the diversification will affect these things, how? Positively
or negatively. Another question arising from this is whether the effects
on the culture can be controlled or managed. Whose responsibility will
that be and for what purpose?

I hope this clarification will help us understand the issue and give more
indepth and useful contribution. I appreciate your help.

[Host's Note: Steve Swan wrote off-list... ..Rick]

>This idea of cultural change do to diversity (sexes, ages, races, economic
>status...which are you thinking of?) is something that has much interest in
>the U.S. Arguments can be made in various ways to support positive and
>negative. Depends on the desired outcome and purpose of the organization. I
>believe that diversity by itself (any catagory) does not automatically
>create a better culture. Something must be done with the diversity.
>
>See if you can get: The Shape of the River, by William G. Bowen (Preface),
>Derek Curtis Bok, James L. Shulman.

-- 

Udy David-Adjah <udy@coscharis.com>

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