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Diversification allows for firms to move away from relying on single brand/service lines. It also allows for them to survive by adapting to changing markets and Demographics.
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What is a diversify?
A diversified trust is a comprehensive wealth management firm that is employee-owned. The firm is based in the Southeast states such as Tennessee, Georgia and North Carolina.
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 are advantage and disadvantage of a firm using retrenchment growth strategy?
The advantage is that the wage bill is reduced, the disadvantage of the retrenchment growth strategy is that a firm may loses employee without reaching their full potential.
What is the most important pricing strategy for a perfectly competitive firm?
Minimizing cost
What are differences between international firm and global firm and how to alter from international firm to global firm?
* INTERNATIONAL FIRM - simply do import and export - operates in foreign countries through licensing and franchising - managed by nationals of home country - concentrates in some countries or regions * GLOBAL FIRM - invests and is present in many countries - has affiliates, subsidiaries and branches in many countries - draws resources such as labor,capital and materials from a global pool - pursues global business strategy. * An International firm can become a global firm by pursuing global business strategy
Define Microsoft's level of diversification strategy it is using?
concentric
Which of these is an attractive strategy for a cash cow division?
concentric diversification
What is Procter and gamble corporate level strategy?
Related diversification
What are strategy implementation?
How can a firm implement this Strategy.
Diversification is an investment strategy to?
Diversification enables the investor to reduce risk by spreading investments among different companies and types of investing.
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 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 a diversify?
A diversified trust is a comprehensive wealth management firm that is employee-owned. The firm is based in the Southeast states such as Tennessee, Georgia and North Carolina.
What is extender strategy?
The extender strategy is when a firm expands into foreign markets that are similar to their current market. They use strategies that are currently successful to expand the business.
Which one of the following is a defensive strategy Diversification Vertical integration Concentration or Divestiture?
Divestiture
What Diversification is an investment strategy to?
reduce risk by spreading investments among several assets.
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.
