Richard Daly Effect, Diversification as Comp Adv

First problem definition using Xlogics (More than 1 exist)
1.

Xchaas = Luchaas*Mvar + Muggos*Lvar (Pls refer Motley's http://motleyfoolatiimapgpx.blogspot.com/ detailed definition about Luchaas and Muggos)

Lvar = Conversion rate at which Luchaas can convert to Muggos
Mvar = Muchaas can convert to Luchaas

Lvar < Mvar
2. CI and Richard Daley Effect. As the no of 'Alleged contribution from Richard Daly' increases the CI decreases. At one point in X axis the CI reaches 0. Richard Daly's contribution to English Language might have benefitted him. But we the Luchaas are being bludgeoned by it. We were shot through our heart for atleast 6 consecutive times. For the more inquisitve mind, here is the link,

http://www.askoxford.com/asktheexperts/faq/aboutwordorigins/quiz

When some one told me WIMWI was tough sometime back, I thought it was an 'Arbit' Comment. Now I realize how true he was.

The amount of learning that is happening here is outstanding. I have learned so much in 25 days what I would not have done had I not decided to become a 'Xchaa'. Opportunity Benefits far outweigh Opportunity costs.

Shifting to a different plane.

What causes a Firm to diversify. From my Eco Learning I derive that 'Managerial Decision' -like Managers may simply want to run a large firm, Eco of Scope etc can cause the Firm to Diversify.
At the same time I was also looking for some Oout of Box Factor that can cause a Firm to diversify/attempt to diversify.

I stumped upon the argument by Ramachandran in Hindu about Mittal Vs Arcelor

http://www.thehindubusinessline.com/2006/04/18/
stories/2006041800641000.htm

The fact that the hostile bid may result in favor of Mittal or Arcelor is unimportant, important thing is in the process what has Mittal done to Arcelor.

Mittal and Arcelor - No 1 and 2 Companies in terms of Volume and Profits vice versa globally.

1. Mittal dampened Arcelor's spectacular growth figures by announcing the bid before Arcelor's Shareholder's conf.
2. Arcelor spend(ing) huge amount of money/efforts to hold its fort
3. Arcelor is taking a 4Billion USD loans from European Banks to manage the new dividend payouts and other activities that have arised after the hostile bid. (Apr 26 Eco Times)

So in effect without tasting the blood, Mittal in its attempt to diversify by acquiring Arcelor, has managed to setback few gains of Arcelor.

In net I believe 'Diversification' has been used as a Competitive Weapon in this case.

Lets see how the game proceeds.