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moving from what you were offering to a total new product, for example,if you were manufacturing clothes and then you move to food industries is a good example of unrelated diversification.
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∙ 12y ago
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What unrelated diversification Berkshire Hathaway used?
Berkshire Hathaway has successfully used unrelated diversification to enhance its corporate portfolio. These include apparel businesses such as Fruit of the Loom, Utility companies like Midamerican Energy, Insurance companies like GEICO. Other fields include high tech training, building, retail, candy, trains and kitchen tools.
What is related diversification?
Related diversification occurs when a company expands its existing products or markets.
What is the diversification of Risk?
Diversification of risk means reduction of risk. Merely reducing risk (and thereby reducing return proportionately) doesn't amount to diversification. Diversification in its true sense represents systematic reduction of risk in such a manner that return per unit of risk increases. By K S JOLLY
Can you name me an example of diversification?
In a business, diversification is a way for a company to reach more customers by adding more to what they do. Think about NIKE. They started out making running shoes and sold them to elite athletes. Now they sell clothing, sports equipment, even water bottles! So they expanded their client base by "diversifying" or "adding to" the stuff they sell. NOTE: Not all companies sell products. Some companies offer more services as a way of diversification.
How does diversification affect financial institions credit risk exposure?
Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.
Examples of unrelated diversification?
Unrelated diversification means moving from what you were offering to a total new product. This is like if you were offering clothes through a cloth industry, then moving onto the food industry.
When is a company likely to choose related diversification and unrelated diversification?
Hell to the prof
Does Google apply unrelated diversification?
Google applies many different types of diversification.
What are some examples of related diversification?
Procter & Gamble
What are some examples related diversification?
Procter & Gamble
What is unrelated diversification?
Unrelated diversification is a form of production expansion in which the firm enters into the production of a good or service that is unrelated to previous business activities. An example would how the Virgin conglomerate produces music but also has an airline. This is a key factor of economies of scope.
When is a company likely to choose related and when unrelated diversification?
Hell to the prof
Examples of diversification?
crops
What is diversification strategies of reliance industry?
Reliance is pursuing unrelated diversification strategy, it is conglomerate and has expanded into various markets; namely power sector, telecommunications, infrastructure, retail etc.
What companies apply unrelated diversification?
Holding Companies frequently diversify into unrelated businesses. For example General Electric is present in Banking, Real Estate, Aircraft Leasing and many more industries.
What unrelated diversification did ITC ltd do?
Indian tobacco Company Ltd has diversified into lifestyle products , food business, packaged industry
What companies apply unrelated diversification in the Philippines?
one is JG Summit Holdings- conglomerate firm with numerous unlike business industries
