Diversification is a corporate strategy in which a company seeks profitability through increased sales volume from new products that are placed in new markets. By any means, diversification is a risky strategy for any business. This is because the business enters into a completely new business where it produces new products. This means that the company breaks into a new market with new products (Porter 1987, p. 43). Diversification can take place at business unit level or at the corporate level. At the business unit level, the business is likely to expand into a new industrial segment where the business is already operating in. At a corporate level, the business can invest in other promising business that is outside its core business unit. This report looks into the diversification of McLaren.