The Chief Executive (CEO) of a small, single business organisation which publishes an annual guide to Singapore restaurants wants to develop a growth strategy. After reviewing the options, the CEO is proposing to diversify into the packaged holiday business in Singapore.

The senior management team disliked the option arguing this was an unrelated diversification. The team preferred to concentrate on its core business which is publishing critical review guides. The Board is now considering its diversification alternatives.

Discuss the the benefits and potential pitfalls of diversification and advise them on how you think it should proceed.

Do provide citations and references (min 6)