Diversification
A strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio
Portfolio strategy
A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines
Acquisition
The purchase of a company by another company
Unrelated diversification
Creating or acquiring companies in completely unrelated businesses
BCG matrix
A portfolio strategy, developed by the Boston Consulting Group, that categorizes a corporation’s businesses by growth rate and relative market share, and helps managers decide how to invest corporate funds
Star
A company with a large share of a fast-growing market
Question mark
A company with a small share of a fast-growing market
Cash cow
A company with a large share of a slow-growing market
Dog
A company with a small share of a slow-growing market