Reference no: EM132534148

A company manufacturing certain well-known brands of malted food, chocolates and biscuits for more than a decade ventured into manufacture of apple juice in 2001, but had to sell off the plant in 2004. During the year 2007, the company's sales were higher by 20% over the previous year despite new competition. Production of chocolates increased by 14 % and of malted food by 22%. The sale of biscuits was also higher although these were processed by third parties and sold under popular brand names of the company having satisfactory financial results in 2007, the company decided to diversify into computer software business.

a) Was it the right strategic decision? (Argue your case by underscoring your discussion and demonstrating deep understanding of strategy as a process).

b) Explain the possible reasons underlying the company's business decision to diversify into software.