According to Figure $8\mathrm{.}1,$ some of the things to look for in identifying a diversified company's strategy include

the actions top management is taking to capture economies of scale and economies of scope and the company's recent moves to divest its cash hogs.

the technological proficiencies and labor skill requirements of each of the firm's businesses and the competitive strategy each business is employing.

the recent moves it has made to divest weak businesses, build positions in new industries, and strengthen the positions of its existing businesses and whether the company's diversification is based narrowly in a few industries or broadly in many industries.

whether the company is focusing on "milking its cash cows" or "feeding its cash hogs" and whether it is pursuing the same or different competitive strategies in each of its business units.

each business's competitive approach $($low$-$cost provider, broad differentiation, best$-$cost$,$ focused differentiation, or focused low$-$cost$),$ whether its products are sold under the same brand or different brands, and whether its businesses are mostly cash cows or mostly cash hogs or a balanced mixture of both.

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