Q 1. When is a company likely to choose (a) related diversification and (b) unrelated diversification? 2. What factors make it most likely that (a) acquisi- tions or (b) internal new venturing will be the preferred method to enter a new industry? 3. Imagine that IBM has decided to diversify into the telecommunications business to provide on- line cloud-computing data services and broad- band access for businesses and individuals. What method would you recommend that IBM pursue to enter this industry? Why? 4. Under which conditions are joint ventures a use- ful way to enter new industries? 5. Identify Honeywell’s portfolio of businesses, which can be found by exploring its website (www.honeywell.com). In how many different industries is Honeywell involved? Would you describe Honeywell as a related or an unrelated diversification company? Has Honeywell’s diversification strategy increased profitability over time?