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George Weston
George Weston

Food & nutrition / Food processing

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Risks

1. Over-Diversification Risk: Diversifying too broadly can result in a lack of specialized expertise and resources for each sector, which can reduce the overall effectiveness and efficiency of operations.


2. Failure to Anticipate Market Changes: Diversifying into different sectors exposes a company to different types of risks that new and unfamiliar markets present. Failing to account for or anticipate these risks can lead to losses.


3. Overlapping Exposure Risk: George Weston may face increased competition in the markets it enters, as competitor products may overlap and cannibalize its own.


4. Currency Exchange Risk: With operations in different countries, Weston may be exposed to fluctuations in exchange rates that can affect the profitability of its operations and its financial results.


5. Poor Execution Risk: Poor execution of its diversification strategy may result in losses for George Weston, either through inefficient operations or inadequate return on investment.


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