Diversification Strategies - 1571 Words

BUS 508 | Diversification Strategies | Dr. Marilyn Caroll | | Kayla Lewis | 5/6/2012 | Diversification Strategies In today’s global markets companies are faced with tough decisions, one of the toughest decisions a corporation faces is whether or not they should diversify their business. Diversification simply means to mix a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio (Silvia M.Chan-Olmsted, 2007). Firms that have success strive to transfer their winning business know- how to new activities. To these firms,†¦show more content†¦Although the company performance increased over the last two years its performance is still significantly lower than in past decades. Part of the reason the company will have a hard time regaining the momentum is because consumers have become exposed to more choices and their demands have changed. Consumers want an all in one service provi der. In my opinion if Time Warner fails to respond to the changing demands of the consumers, it’s as good as a dying dinosaur. General Electric’s (GE) humble beginnings began in 1878 when Thomas Edison established a light company called â€Å"Edison Electric Light Company†. GE was created as a result of a merger between the Edison Electric Light Company and Thomson-Houston Light Company (David Allen, 2007). It still maintains the same Dow Jones index it had since 1896. The company has a global presence in 100 countries and growing and currently employs 313,000 people worldwide. GE is a multinational conglomerate whose operations span financial services, energy, industrial manufacturing and healthcare. It’s a diversified and profitable conglomerate with a lot of very good but very unrelated business (Barron, 2011). Diversifying provides the company with a degree of protection against poor performance in any business segment (Arthur Anderson, 2007). This has helped shield profit losses during the recession ofShow MoreRelatedDiversification Strategies1287 Words   |  6 PagesDiversific ation Strategies BUS 508 Contemporary Business Seena S. Nelms Strayer University Diversification Strategies What is diversification? According to the Merriam-Webster Dictionary online, diversifications means to produce variety or to engage in varied operations. Diversification is a strategy that takes companies into new markets with new products and services to increase their profitability. Some corporations have diversified and succeeded, while other haveRead MoreDiversification Strategy1412 Words   |  6 PagesAssignment 2: Diversification Strategy The purpose of this paper is to compare and contrast two companies; One successful and one unsuccessful. The two companies chosen for this purpose is General Motors (unsuccessful) and Toyota Motor Corporation (successful). The content of this paper will analyze, compare and contrast the outcomes, and recommend actions that General Motors could have made to make their diversification venture more successful. The analysis will include the company’s coreRead MoreDiversification Strategies1949 Words   |  8 PagesRunning head: STRATEGIES Diversification Strategies Pamela L. McGhee Dr. Kimberly Anthony The Business Enterprise – BUS 508 Strayer University, Savannah Campus 30 October 2011 Diversification IBM a Fortune 500 company celebrated its 100th birthday this past June. IBM employs over 400,000 employees and is considered to be a $100 billion dollar or more giant in e-business global marketing technology. With the inception of the computer, IBM’s core business was mainframe computersRead MoreDiversification Strategies2112 Words   |  9 PagesDiversification Strategies Let’s explain diversification of a company first; I myself thought it meant something totally different. A diversified company is a company that has multiple unrelated businesses. Those different businesses require separate management teams, have different customers, and produce different products or sell different services. One of the advantages of being a diversified company is that can create a separation from issues of one of the other businesses. Companies canRead MoreMicrosofts Diversification Strategy2716 Words   |  11 PagesIntroduction This essay plans to focus on the corporate strategy of Microsoft, and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage. This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversifyRead MoreDiversification Strategy at GE933 Words   |  4 Pagesï » ¿Introduction Diversification strategy is noted by Martà ­nez-Campillo, Fernà ¡ndez-Gago (2011) as a type of corporate strategy that is employed by an organization that aim at increasing its profitability by means of enhanced sales volume which is realized via the engagement in new markets as well as new products. Diversification can take place either at a corporate level or at business level. If diversification takes place at business level, then the business is likely to expand to a totally new industryRead MoreDiversification: A Business Strategy1194 Words   |  5 PagesIntroduction Diversification as a business strategy has a number of advantages. Diversified firms experience more stable cash flows, gain more market knowledge and when they are able to tie their different products together can often experience synergies as well. When diversification fails, however, it can drain a companys finances and create a distraction within the organization. Some firms struggle with diversification, trying to branch out from their core business repeatedly, but never beingRead MoreCanon Diversification Strategy4782 Words   |  20 PagesBUSINESS STRATEGIC DEVELOPMENT CANON DIVERSIFICATION STRATEGY [pic] By: NURSYAH FAHMANSYAH RIZKI (0832200304) Magister Manajemen Sistem Informasi Universitas Bina Nusantara 2009 DIVERSIFICATION Definition Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unitRead MorePepsico Diversification Strategy1990 Words   |  8 Pages16 October 2012 Draft v1 Seitenzahlen einfà ¼gen, Inhaltsverzeichnis einfà ¼gen Pepsico’s Diversification Strategy in 2008 Discussion material 16 October 2012 16 October 2012 Draft v1 Contents Seitenzahlen einfà ¼gen Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations QA 1 16 October 2012 Draft v1 2.1 PepsiCo Overview Overview nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ nï  ®Ã¢â‚¬ ¯ Acquisitions nï  ®Ã¢â‚¬ ¯ Formed in 1965:Read MoreNoco Soccer Academy643 Words   |  3 Pagesin working toward expansion are loss of customer base to high school sports programs after they reach 14 years old, a narrow selection of programs for current customers, lack of diversification and limited awareness of the company’s programs and philosophy in adjacent towns. Dyer could employ many operational strategies help reach his ultimate goal of a new sports complex. There are several opportunities available for NOCO to take advantage of with minimal threat or competition to worry about.