The Advantage and Disadvantages of a Corporation Diversifying Internationally
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The advantage and disadvantages of a corporation diversifying internationally
JING YIN
Table of Conten
1.0 Introduction
2.0 Body of Content
3.0 Conclusion
4.0 Reference
1. Introduction
Diversification, as a risk management means, mainly concerns the alteration and experimentation of various kinds of investments that are included in a specified portfolio. The reason why it is the usual practice is because a certain portfolio is mostly inclusive of different investments that can bring about higher profits as a relatively lower risk of stand-alone investments within the similar or even same stake mix. However, diversification can give its advantages into full play just by virtue of secure investments or investments of international securities due to the lower relationship between the local investing projects.
Body of content
Here, the term diversification is referred to as the strategic instruction that leads relevant companies or organizations to other competitive goods, services, or even the marketplace through both external and internal developments so to speak. In this vein, diversification can be divided into many categories as follows.
Type of Diversification
What comes as the first is the concentric diversification meaning that industries relating to the technological aspect have many similarities, because of which the companies can make contrasts and comparisons in terms of technological issues so as to gain more advantages in the market. However, in order to do this, it is necessary to make appropriate change in both the marketing strategies and methods that are used by the noted business. The major purpose of this practice is to boost the overall market value for a specific product or service so as to gain as many profits as possible. Meanwhile, the strategy of concentric
The advantage and disadvantages of a corporation diversifying internationally
JING YIN
Table of Conten
1.0 Introduction
2.0 Body of Content
3.0 Conclusion
4.0 Reference
1. Introduction
Diversification, as a risk management means, mainly concerns the alteration and experimentation of various kinds of investments that are included in a specified portfolio. The reason why it is the usual practice is because a certain portfolio is mostly inclusive of different investments that can bring about higher profits as a relatively lower risk of stand-alone investments within the similar or even same stake mix. However, diversification can give its advantages into full play just by virtue of secure investments or investments of international securities due to the lower relationship between the local investing projects.
Body of content
Here, the term diversification is referred to as the strategic instruction that leads relevant companies or organizations to other competitive goods, services, or even the marketplace through both external and internal developments so to speak. In this vein, diversification can be divided into many categories as follows.
Type of Diversification
What comes as the first is the concentric diversification meaning that industries relating to the technological aspect have many similarities, because of which the companies can make contrasts and comparisons in terms of technological issues so as to gain more advantages in the market. However, in order to do this, it is necessary to make appropriate change in both the marketing strategies and methods that are used by the noted business. The major purpose of this practice is to boost the overall market value for a specific product or service so as to gain as many profits as possible. Meanwhile, the strategy of concentric
References: 1. Ansff .H. 2005. Corporate Strategy. Mc Graw Hilt, New York. 2. Bright W.M. 2006. Alternative Strategies for Diversification. Research Management 12 No. 4 (July 1969) p 92 - 102. 3. Drucker. P. 2004 Management: Tasks, Responsibilities, Practice. Harper & Row. 4. Hoffman R. 2003 Strategies for Turnarounds. Prentice Hall. 5. Cole G.A. 2008. Organizational Behavior. Irwin McGrow – Hill 6. Pugh D.S. 2000. Organizational Theory - Selected Readings, Penguin. 7. Quinn J.B. 2000. Strategies for Change: Logical Incrementalism. Richard D.Irwin. 8. Hax A.C. 2001. The Strategic Concept and Process: A Pragmatic Approach.Prentice Hall.