| Summary: | Business diversification, a strategy for expanding business through new units or subsidiaries, requires
careful planning. It can boost a firm’s growth, leading towards wealth maximization; however, without
thorough analysis and planning, it can also lead to costly failures. This case study focuses on Kental
Bina Sdn. Bhd. (KBSB) and their strategic move to diversify their business. KBSB, like many Small
Medium Enterprises (SMEs), understood the need for a well-versed and clear plan to ensure business
success. Their decision to diversify was the result of a comprehensive process, analyzing potential
opportunities and threats in their industry as well as evaluating their own strengths and weaknesses.
Understanding KBSB's diversification strategy is crucial for making informed decisions and learning
from their successful expansion. Therefore, this case study provides a comprehensive understanding of
the process and implications of business diversification, making it a valuable resource for businesses
considering a similar path.
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