The purpose of this research was to analyse the case company’s decision for horizontal diversification. Besides this, the given research paper aimed to develop practically applicable tools to assist the company’s procurement personnel in supplier evaluation and selection process. Data for this study were collected from books, scholarly and news articles, annual reports and web sources. Adding to this, three interviews with the case company’s managing director were conducted. The results of the study show that the strategic decision of diversification is reasonable considering favourable factors of the external environment, availability of internal resources, as well as possession of required competencies by the company staff. Assisting the company in its decision implementation will be the two tools developed in this research paper.