General Electric moves to its core competencies
BUSINESS & MANAGEMENT
Management theories abound on why focusing on one's core competencies is the smartest thing to do as well as on why diversifying one's product / service portfolios is a sound risk management strategy. Choosing wisely between the two is probably more of a reaction to the prevailing situation than an active strategy.
The recent move by the conglomerate General Electric to divest its business unit related to banking & real estate activities is an indication of how the changing economic and regulatory environment has forced organizations to reinvent themselves. An article appearing in the New York Times succinctly captures this theme (link given below).