The corporate trend in the mid-20th Century of acquiring new enterprises and forming conglomerates enabled corporations to reduce costs of contracting and other transactions, and enable investors to reduce risks by diversification of business holdings. This trend was reversed in the late-20th Century when corporations began to shed "non-core" divisions and activities. The "unbundling" of the corporation is sometimes a response to the advent of information technology (and its reduction of transaction costs), sometimes a response to the spreading of investment risks enabled by pooling capital in mutual funds and similar investment vehicles, and sometimes the following of a popular trend among corporate management seeking to appear current and impress investors.
Focus on core business leads Ford to sell out and Freightliner to add muscle to heavy truck business.(Ford Motor Co.; Freightliner Corp.)
Mar 01, 1997; There were several crisp vehicle business issues bandied about at this year's Detroit International Auto Show. What has become of...