Sunday, November 15, 2015

Chapter 12- Implementing Corporate Diversification

Chapter 12 deals with the importance with implementing corporate diversification. The main benefit derived from implementing by having a balanced, diversified board of directors. It allows investors to maximum their potential investments. Netflix follows the classic diversified group of directors by having the majority as outside of the company. These Directors, some who are major shareholders, along with industry leaders from other firms, help keep the confidence of the shareholders. Shareholders main focus is on maximizing to its fullest potential the growth of the firm and returns on investment. The main insider is the chairman of the board who is also the founder of Netflix, Reed Hastings.


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