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What are the major advantages and disadvantages of diversification?
The advantage of diversification is that it broadens your exposure to market swings. The principle is that one sector (or stock) may devalue, but not all sectors will devalue. In the long term, most sectors tend to experience growth, so the total portfolio value of a diversified account should gradually grow. The disadvantage of diversification is that a portfolio focused on a single sector or stock can have some super growth, naturally this comes with increased risk. Another disadvantage is that diversification can be difficult for small investors. (It doesn't need to be, but it can be.)
How is urbanization affected by business?
1. Business brings in the people that make a city grow Business fuels urbanization. 2. Business can bring pollution problems. 3. Business fuels urbanization.
Who was chairman of the board of Allstate in 1957?
Judson Branch Mr. Branch, a graduate of the University of Michigan, was with Allstate for 38 years, starting in 1934. He was one of the company's first agents, and in later years he helped revamp the business by establishing over-the-counter sales at Sears Roebuck & Company stores. He was elected president and chief executive officer in 1957 and directed the company's growth through diversification from auto and fire insurance into life, homeowner, commercial and other lines. He was named chairman in 1966.
What did President Calvin Coolidge say about business in 1927?
"The business of America is business."
Evolution of business policy?
history of business policy
When diversification involves additions of a business related to the firm in terms of technology markets or products it involves?
Concentric Diversification
What is concentric diversification?
concentric diversification Type of diversification where a firm acquires or develops new products or services (closely related to its core business or technology) to enter one or more new markets.
What is product diversification?
The process of expanding business opportunities through additional market potential of an existing product. Diversification may be achieved by entering into additional markets and/or pricing strategies.
What is the most profitable form of farm diversification?
Franchising is a profitable form of carrying out firm diversification. The identity of the firm and its standard procedures are maintained but the franchisee commits a certain amount of money to set up a venue and trade in the franchiser's business model. Franchising can allow a business to quickly expand in a foreign territory.
What are diversification?
Different diversification rates for two clades of animals.
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
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.
What is supplemental diversification?
Different diversification rates for two clades of animals
What are Diversification Rates?
Different diversification rates for two clades of animals.
The difference between concentric diversification and conglomerate diversification?
Concentric diversification occurs when a firm adds related products or markets. The goal of such diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
When is a company likely to choose related diversification and unrelated diversification?
Hell to the prof
