Bluth Company scenario Michael Bluth is President and CEO of The Bluth Company. The Bluth Company is a publiclyheld company operating in the greater LA area with four business lines (Bluth Homes, Gobias Coffee, Bluths Frozen Bananas, and Boyfights films). Bluth Homes is their residential housing development business. Although Bluth Homes are, as their tag line suggests, solid as a rock, their sales have been slow in an oversaturated and declining LA housing market. Gobias Coffee is a very successful casual coffee house and art gallery in the downtown LA area. It is dominant in downtown LA, but there is plenty of opportunity to expand into greater LA and surrounding areas. Bluths Frozen Bananas is a quaint frozen banana stand out on the Santa Monica Boardwalk. Michaels father, George Sr., continuously told him theres always money in the banana stand and that is very true. Bluths Frozen Bananas is a very successful and popular frozen dessert stand that produces a lot of free cash flow, but the banana stand is not yet prepared to expand geographically. Boyfights films is their collection of short films. The short film industry is new but shows potential to explode and Boyfights films initial screening was met with overwhelmingly positive reviews from critics. After reading the scenario and carefully review Chapter 6, please answer the following questions: What type of diversification does The Bluth Company use? Explain your choice and the advantages of the type of diversification you believe The Bluth Company uses. Classify in the BCG Matrix the several businesses that compose the companys portfolio. For each, For each business, indicate how much should be invested, if anything, by the company : Bluth Homes Gobias Coffee Banana Stand Boyfights Films You are a consultant for The Bluth Company. The companys CEO wants to further expand its business. Offer a sound advice to the company in terms of adopting a growth strategy that will, hopefully, result in profit and increased performance.