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What is the scope of diversification?

Updated: 9/17/2019
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Q: What is the scope of diversification?
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Related questions

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 are diversification?

Different diversification rates for two clades of animals.


What are the advantages of diversification strategies?

There are two main reasons to diversify: # diversification may benefit the firm's owners through increasing the efficiency of the firm # diversification decisions may reflect the preferences of the firm's managers Shareholder motivation for diversification: * econonomies of scale and scope * to gain synergies * to make use of internal capital markets * to diversify shareholder portfolios * to economise on transaction costs * identifying undervalued firms * when there is excess capacity * internal labour market * brand extension Management Motives: * pecuniary advantages * non-pecuniary (such as ego, social standing etc)


What is supplemental diversification?

Different diversification rates for two clades of animals


What are Diversification Rates?

Different diversification rates for two clades of animals.


When is a company likely to choose related diversification and unrelated diversification?

Hell to the prof


What is related diversification?

Related diversification occurs when a company expands its existing products or markets.


Does Google apply unrelated diversification?

Google applies many different types of diversification.


What are the major advantage and disadvantage of concentric diversification?

what are the major advantage and disadvantage of concentric diversification?


When did Nepal start trade diversification?

5 years plan Nepal adopted trade diversification


What is agricultural diversification?

Agriculture diversification refer to the policy of a country to change the production of one major crop


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.