Abstract: The case‚ "ITC’s Diversification Strategy" gives an overview of ITC’s diversification into related and unrelated areas in recent years. The case presents an overview of the cigarette industry in India and gives a detailed account of the areas in which ITC has diversified. The competition that ITC is going to face in each of the segments it has diversified into is also explored. Issues: Criteria of selection of new businesses and the degree of diversification involved as well as to
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Unilever was founded on soap and margarine - both products essentially sharing the same raw materials with diversification into other business areas starting in the midfifties. The second phase started in the mid-fifties when rapid growth in the Western world resulted in increased competition and lower margins in the company’s traditional categories. Unilever’s strategy was an active diversification programme through acquisition. The vigour with which this was pursued‚ while successfully introducing
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Diversification Diversification can be briefly defined as the expansion of a firm into a range of different product areas. Firms may choose to diversify for either of two reasons. First‚ diversification may benefit the firm’s owners by increasing the efficiency of the firm. Second‚ if the firm’s owners are not directly involved in deciding whether to diversify‚ diversification decisions may reflect the preferences of the firm’s managers. Singapore Airlines (SIA) serves as a typical example of diversification
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16 October 2012 Draft v1 Seitenzahlen einfügen‚ Inhaltsverzeichnis einfügen Pepsico’s Diversification Strategy in 2008 Discussion material 16 October 2012 16 October 2012 Draft v1 Contents Seitenzahlen einfügen Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations Q&A 1 16 October 2012 Draft v1 2.1 PepsiCo Overview Overview n n n n Acquisitions n Formed in 1965:
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Diversification C’Airea McCluron Entrepreneurial Finance: Capitalization for the Entrepreneur Diversification Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time. Note: Having a lot of investments does not necessarily make your portfolio diversified. For diversity‚ you need several different types of investments. Popular
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TYPES OF CORPORATE DIVERSIFICATION When a firm chooses to diversify‚ it faces a decision as to how related the new business(es) is(are) to the existing businesses of the firm. When Charles Bluhdorn was CEO of a company called Gulf+Western in the 1950s‚ he diversified into a host of industries: motion pictures (Paramount Pictures‚ the makers of The Godfather‚ Chinatown‚ and other movies)‚ clothing‚ cigars‚ zinc mines‚ auto parts‚ and sugar‚ among others! In contrast‚ a company such as Cooper
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It has also gone through a number of changes including the acquisition and subsequent divestiture of several fast food chains. This paper focuses on the process that all companies should follow to help determine whether the industry they are in demonstrates sufficient attractiveness and whether their current business units have sufficient competitive advantage. In 1965‚ Pepsi-Cola and Frito-Lay combined forces to create a new company that could capitalize on the combined strengths of the two
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#2 Diversification Strategies “Virgin Group and Benetton Group” Gilbert Feliciano II Professor- Dr. Brian Collins Strayer University CONTEMPORARY BUSINESS- BUS 508 2 ABSTRACT The diversification literature has largely focused on the degree of applicability of firm resources to a new industry: A firm should diversify into more related industries since synergistic benefits decrease with the distance between the new industry and the firm’s primary industry. It argues that related diversification
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DIVERSIFICATION. For companies‚ they all want to have bigger market share and earn more profit. So they will find many ways to penetration into the market like diversification. Diversification strategies are used to expand firms’ operations by adding markets‚ products‚ services‚ or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.There are basically two broad forms of diversification
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Diversification in E- Commerce [pic] Diana Reyes – 27828 Introduction Economies of scope and synergies in business operations are consequences of diversification strategies. It is possible to classify companies according to the type of diversification strategy selected. Unrelated diversifiers are companies that diversify across industry‚ while related diversifiers are firms that diversify within the industry (Kim‚ Hwang and Burgers 1989). Companies pursuing related diversification over
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