Question.5415 - Based on the previous listing, would you say that ITT’s business lineup reflects a strategy of related diversification, unrelated diversification, or a combination of related and unrelated diversification? What benefits are generated from any strategic fit existing between ITT’s businesses? Also, what types of companies should ITT consider acquiring that might improve shareholder value? Justify your answer.
Answer Below:
Diversification Strategy: Related Diversification: There are clear synergies and strategic fits among some of ITT's divisions. For example, the Indust...
Diversification xxxxxxxx Related xxxxxxxxxxxxxxx There xxx clear xxxxxxxxx and xxxxxxxxx fits xxxxx some xx ITT's xxxxxxxxx For xxxxxxx the xxxxxxxxxx Process xxxxxxxx pumps xxxxxx and xxxxxxx Technologies xxxxxx controls xxxxxxxxxx both xxxxx to xxxxxxxxxx equipment xxxxxxx suggesting xxxxxxxxxxxxx for xxxxxxxxxx sharing xxxxxxxxxxxxx and xxxxxxxxxx engineering xxxxxxxxx The xxxxxxxxxxxx Solutions xxxxxxxx connectors xxx fittings xxxxxx multiple xxxxxxx that xxx other xxxxxxxxx also xxxxxx such xx automotive xxxxxxxxx and xxxxxxxxxx equipment xxxxxxxxx Diversification xxx Motion xxxxxxxxxxxx Division xxxxx pads xxxxx absorbers xxxxx somewhat xxxxxxxx from xxx other xxxxxxxxx While xxxxx might xx some xxxxxxx in xxxxxxxxxxxxx processes xx materials xxx end xxxxxxx automotive xxx rail xxx the xxxxxxxx technologies xxxxxxxx are xxxxx different xxxx industrial xxxxxxx equipment xx interconnect xxxxxxxxx Benefits xx Strategic xxx Technology xxxxxxxx Expertise xx materials xxxxxxx engineering xxx manufacturing xxxxxxxxx can xx shared xxxxxx divisions xxxxxxx to xxxxxxxxxx and xxxx efficiencies xxxxxxxxxxxxx ITT xxx offer xxxxxxx solutions xx customers xxxxxxxxxx its xxxxxxx product xxxxxxxxx to xxxx a xxxxx range xx needs xxx example x customer xx the xxxxxxxx industry xxxxx need xxxxx valves xxx monitoring xxxxxxx from xxx Industrial xxxxxxx Division xx well xx connectors xxx fittings xxxx the xxxxxxxxxxxx Solutions xxxxxxxx Supply xxxxx Efficiencies xxx can xxxxxxxxxxx its xxxxxxxxxx power xxx negotiate xxxxxx deals xxxx suppliers xxxxxxxx costs xxxxxx multiple xxxxxxxxx Brand xxxxxxxxxx A xxxxxx reputation xxx quality xxx reliability xx one xxxxxxxx can xxxxxxx the xxxxxxxxxxx of xxxxx divisions xxxxxx it xxxxxx to xxx new xxxxxxxx ITT xxxxxx consider xxxxxxxxx companies xxxx Strengthen xxx position xx existing xxxxxxx Rationale xxxxxxxxx companies xxxx complementary xxxxxxxx technologies xx market xxxxxx in xxx industrial xxxxxxxxxx aerospace xx medical xxxxxxx can xxxxxxx ITT's xxxxxxxxxxx advantage xxx increase xxx market xxxxx Expand xxxx adjacent xxxxxxx Rationale xxxxxxxx related xxxxxxx that xxxxxxxx ITT's xxxxxxxx capabilities xxx create xxx growth xxxxxxxxxxxxx and xxxxxxxxx its xxxxxxx streams xxxxxxx its xxxxxxxxxx portfolio xxxxxxxxx Acquiring xxxxxxxxx with xxxxxxxxxx technologies xx areas xxxx as xxxxxxxxxx sensors xx data xxxxxxxxx can xxxx ITT xxxxxxx new xxxxxxxx and xxxxxxxx that xxxx evolving xxxxxxxx needs xx conclusion xxxxx diversification xxxxxxxx is x mix xx related xxx unrelated xxxxxxxx offering xxxxxxxx like xxxxxxxxxx transfer xxx cross-selling xx boost xxxxxxxxxxx value xxx should xxxxxx acquisitions xxxx strengthen xxx existing xxxxxx positions xxxxxx into xxxxxxxx sectors xxx enrich xxx technological xxxxxxxxxxxx
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