The Rationale Behind Related Diversification Is to

Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of tablet computers.

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Avoid sharing resources and competencies across different business lines.

. Avoid sharing resources and competencies across different business lines. A core competency is a skill set that is difficult for competitors to imitate can be leveraged in different businesses and contributes to the benefits enjoyed by customers within each business Prahalad Hamel 1990. In a related diversification the resulting combined business should be able to achieve improved ROI because of increased revenues decreased.

Avoid sharing resources and competencies across different business lines. Obtain only 10 percent of the revenues from the primary business activities. Explain and support your answer.

The rationale behind related diversification is to. The rationale behind related diversification is to - 12801251 brieannamiller2657 brieannamiller2657 06112019 Business High School answered The rationale behind related diversification is to 1 See answer Advertisement Advertisement brieannamiller2657 is waiting for your help. Which is the better approach to diversificationa strategy of related diversification or a strategy of unrelated diversification.

Benefit from economies of scale and scope. 1000 points The rationale behind related diversification is to limit learning-curve and experience-curve effects. The rationale behind this technique is that a portfolio constructed of a variety of assets will on average have a lower portfolio risk than any incumbent holding or security.

Related diversification occurs when a firm moves into a new industry that has important similarities with the firms existing industry or industries Figure 84 The Sweet Fragrance of Success. The strategy is loaded with hurdles because it requires a lot of investment and a lot of man power as well as focus of the top management. One rationale for pursuing related diversification is to obtain market powerdominance.

Avoid sharing resources and competencies across different business lines. Limit learning-curve and experience-curve effects. The literature review analyzes scholarly literature related to the topic of diversification discusses the similarities and differences among these articles and concludes with the scholars findings.

The rationale behind related diversification is to. Carefully explain the difference between and the rationale for selecting a strategy of related diversification andor a strategy of unrelated diversification. A related diversification is one in which the two involved businesses have meaningful commonalties which provide the potential to generate economies of scale or synergies based upon the exchange of skills or resources.

This is an example of. Benefit from economies of scale and scope. Diversification strategy is observed when new products are introduced in a completely new market by the company.

Limit learning-curve and experience-curve effects. Benefit from economies of scale and scope. The rationale behind this technique is that a portfolio constructed of different kinds of assets will on average yield higher long-term returns and lower the risk of any individual holding or security.

However as also shown many firms still diversify to a greater or lesser extent. But still in the long run diversification strategy is one of the best growth strategy in the long run. The Brands That Make Up the Lauder EmpireBecause films and television are both aspects of entertainment Disneys purchase of ABC is an example of.

Again there are a number of persuasive reasons for firms to make the strategic choice. In what situations could related diversification be considered unfair competition. Avoid sharing resources and competencies across different business lines.

Limit learning-curve and experience-curve effects. While there are economies of scale in a. Diversification attempts to smooth out unsystematic risk events non-market wide events in a portfolio ie.

The rationale behind related diversification is to. Limit learning-curve and experience-curve effects. By Rajini Padmanaban - August 15 2013.

A solid product idea a well-planned execution strategy skilled resources and the right financial backing are some of the core elements in successfully establishing a product company. Obtain only 10 percent of the revenues from the primary business activities. Obtain only 10 percent of the revenues from the primary business activities.

Limit learning-curve and experience-curve effects. The rationale behind and consequences of diversifying company operations. Benefit from economies of scale and scope.

Obtain only 10 percent of the revenues from the primary business activities. Benefit from economies of scale and scope. Finally the instructors manual offers a guide on how professors.

In the US too much market power may result in a challenge by the US Justice Department because it may be perceived as anticompetitive. Obtain only 10 percent of the revenues from the primary business activities. Sizable gains will help offset losses in other areas.

Add your answer and earn points. The rationale behind related diversification is to benefit from economies of scale and scope. Some firms that engage in related diversification aim to develop and exploit a core competency to become more successful.

Benefit from economies of scale and scope. Benefit from economies of scale and scope. The rationale behind related diversification is to _____.

The Rationale behind a Companys Geographical Diversification. Avoid sharing resources and competencies across different business lines. Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of tablet computers.

Obtain only 10 percent of the revenues from the primary business activities. The Strategic Rationale for Related Diversification There is a clear and powerful rationale for firms to decide to concentrate on one sector as outlined above. The rationale behind related diversification is to A.

The rationale behind related diversification is to A.

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