Diversification – A risk-reduction strategy that involves adding product, services, location, customers and markets to your company’s portfolio .

Many small companies are one-trick ponies, betting their entire futures on a single product, a single service, a single location or even a single customer. And there’s nothing wrong with that in the beginning: A narrow focus lets a startup concentrate energy on doing one thing extremely well.

But as you grow larger, you’ll find opportunities to add products, services, locations, customers and markets. Diversifying in this way can help your business weather tough times by providing alternate sources of revenue in the event that your original market dries up, stops growing or is hit by new competition.

Change – Change Management refers to any approach to transitioning individuals, teams, and organizations using methods intended to re-direct the use of resources, business process, budget allocations, or other modes of operation that significantly reshape a company or organization.

Reasons for change can be Globalization and constant innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change, and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge.

Diversification brings change and can be a high risk strategy, many companies attempting to diversify have led to failure. However, there are a few good examples of successful diversification:

• Apple moved from PCs to mobile devices
• Virgin Group moved from music production to travel and mobile phones
• Walt Disney moved from producing animated movies to theme parks and vacation properties
• Canon diversified from a camera-making company into producing an entirely new range of office equipment.