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It is a long term strategy laid out by management of the company to get into other areas which offers good profit margins. It should stand on the company resources like talent and expertise.

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Classification of industries?

Industry is classified in 4 types:- 1.Extracting Industry 2.Genetic Industry 3.Construction Industry 4.Manufacturing Industry By Shreyansh Dugar The Assam Valley School


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

Hell to the prof


What is agricultural diversification?

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


What is difference between vertical integration and diversification?

Diversification is when someone's tight clit is sniffed and integration is when the clit is jizzed on


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.

Related Questions

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.


What are the top construction industry news websites?

world construction today is the leading global construction industry online platform. It covers latest happenings in construction industry, construction industry reports, upcoming construction industry events & conference news.


What is Construction Industry Council's population?

The population of Construction Industry Council is 10.


When was Construction Industry Council created?

Construction Industry Council was created in 1988.


What has the author Charles S Peet written?

Charles S. Peet has written: 'The implications of reduced defense demand for the electronics industry' 'A structured approach to diversification planning' -- subject(s): Diversification in industry, New products, Planning


What is the Construction Industry AFR target for 2009?

What is the AFR of the construction industry from 2008 - 2011


Is the construction industry a secondary industry or a tertiary industry?

secondary


When was British Construction Industry Awards created?

British Construction Industry Awards was created in 1998.


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 has the author Charlene Henderson-Brewster written?

Charlene Henderson-Brewster has written: 'Diversification of the Caribbean banana industry' -- subject(s): Agricultural diversification, Banana trade, Banana products


How much work in the construction industry was new work?

Almost 67 percent of the value of all industry construction work in 1997 was new construction


What types of careers are available in construction?

electrician