• Dfhsofj
    , motorbike, mopeds etc. is a related diversification. The advantage of related diversification are that the existing infrastructure can be optimally utilized and the reputation of existing product can be useful in easy introduction of the newer products. The disadvantage of the related diversification...
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  • Risk Reduction Techniques in Management Decision Making
    , Jaffe and Jordan (2008) 'Risk Analysis, Real Options, and Capital Budgeting', in Modern Financial Management, 8th edition, McGraw-Hill Companies, Inc. Scribd (2009) Advantages and Disadvantages of Diversification, [Online], Available: http://www.scribd.com/doc/12376024/Advantages-and-Disadvantages-of-Diversification....
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  • Bus 508
    , distribution of risks across several related or unrelated businesses, as well as the ability to offer lower prices than their competitors. Additionally, the company can benefit from entry into new markets. Although these are very great benefits, diversification requires very extensive research and market...
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  • International Joint Ventures
    hotel/leisure industry and is looking at diversification to improve their competitive advantage and compliment their current offerings. The opportunity presented by this Joint Venture (JV) will assist both Sandford and Fremantle in entering a new market. It will be challenging mainly because of the...
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  • stages of strategic management
    the critical issues * Doing a balanced evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization * Deciding on the alternatives that should be implemented or recommended...
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  • ikuftyu
    , and makes it easier for management to hide things. Conglomerates can trade at a discount to the overall individual value of their businesses because investors can achieve diversification on their own simply by purchasing multiple stocks. The whole is often worth less than the sum of its parts...
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  • Organisation Behaviour
    . However, organizations pursuing a strategy of unrelated diversification are likely to use a conglomerate structure. The conglomerate is an organizational structure that each business is placed in a self-contained division. The conglomerate company usually involves a parent company and several...
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  • Corporate Strategy Organization Design
    Unrelated business Motives are: growth, risk spreading (if one product goes down you have another one to offer), value creation (creating value for shareholders). Competitive advantage from diversification Economic of scope: Sharing tangible resources (research labs, distribution systems...
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  • Jolibee Expanding Strategy
    [Online]. Available from: http://management.about.com/cs/generalmanagement/a/keyperfindic.htm [ Accessed 20 February 2010] • Anon, 2009. Ezinacticle.com. Home[online]. Diversification, – Available from: http://ezinearticles.com/?Understand-the-Advantages-and-Disadvantages-of-Unrelated-and-Related...
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  • Market Analysis
    , 2005). Diversification Diversification strategy is distinct in the sense that when a company diversifies, it essentially moves out of its current products and markets into new areas. It is important to note that diversification may be into related and unrelated areas. Related diversification may...
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  • The Virgin Group
    strategic analysis of the company, as it helps management in assessing how difficult the achievement of the goals are, as well as highlighting key competitive advantages and disadvantages and matching such unique features to the organization’s goals (Coopers and Lybrant, 1990), by looking at the...
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  • Mlr465
    organizations existing peaks and valleys * When an organizations products are currently in declining stage of the products life cycle. Unrelated Diversification Guidelines * When revenues derived from an organization’s current products would increase significantly by adding the new...
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  • Strategic Management Notes
    of business still have some kind of fit – e.g., Campbell’s Soup purchased Pepperridge Farm cookies Advantages of related diversification 1. Economies of scope –sharing activities, transferring core competencies 2. Blocking competitors through multipoint competition Conglomerate/unrelated...
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  • Asda; Kf; Skl
    they have any practical meaning for a real discussion in a particular context. Diversification is entry into new markets with new products. Diversification may be of two kinds—related and unrelated. Related diversification again divides into backward, forward, and horizontal integration. Backward...
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  • Forms of Business
    , most often in agricultural co-ops, but not always.Advantages and disadvantages of a cooperative Advantage * It is usually inexpensive to register a cooperative. * All members and shareholders must be active in the cooperative. * Shareholders have an equal vote at general meetings regardless of...
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  • General Electric
    advantage potential CORE CONCEPT: The two biggest drawbacks to unrelated diversification are the difficulties of competently managing many different businesses and being without the added source of competitive advantage that cross-business strategic fit provides. 2. Demanding...
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  • m.com strategic project
    different products and markets. The diversification strategy can be split into two different types: Related diversification Unrelated diversification Please click the links above to read more. I have noticed many concept pages for China as an investment. For investors, however, India may...
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  • Formula Sheet
    * The economies of scale and cost advantages helps to build up substantial entry barriers * Substitutes * Low cost position puts the firm in a favorable position with respect to substitute products introduced by new and existing firms * Disadvantages * Too...
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  • Strategic Management Notes
    Diversification Strategy 1. A strategy of unrelated diversification has appeal from several angles: a. Business risk is scattered over a set of truly diverse industries b. The company’s financial resources can be employed to maximum advantage by investing in whatever industries offer the...
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  • Business Administration
    distribution channels * Cost disadvantages unrelated to scale * Intellectual property (patents, trademarks, trade secrets) * 2, 3 and 4 in notebook * 5 Rivalry among existing firms * Undifferentiated products and low switching costs encourage more intense rivalry * Many...
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