explain there are two kinds of diversification—linked and constrained. Companies using linked diversification enter new businesses when it relates in some way to another business they are already in (it is linked to it)‚ but does not necessarily have any connection to their other businesses. If they are using constrained diversification‚ however‚ they only enter a new business if it is based on their core resources or competencies. Companies based on linked diversification have little coherence to their
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finding local food almost impossible. Also‚ Shanghai is relatively costal; therefore‚ a portion of the 100-mile radius is lost to the ocean. A large issue is that most food for Shanghai is outsourced. The local fruit stand guy could get his oranges from Yunnan‚ apples from An Hui‚ and peppers from Si Chuan‚ but we just don’t know. Shanghai is a first world city in a third world country and this makes living by a first world diet very improbable. The ultimate demise of the 100-mile diet in Shanghai is the
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business entities in the case of mistakes ‚ and in the case of the unconscious and its assumed these mistakes consequences . ( 3 ) causes the diversity and complexity. As business environment ‚ production management and diversification of financial behavior ‚ resulting in the diversification of business failure behavior ‚ triggering the financial crisis‚ the incentives are also diverse. ( 4 ) and potentially catastrophic consequences . Once the financial crisis occurred ‚ it may lead to bankruptcy . Meanwhile
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strategic options to use. This is one simple way of looking at Strategic development options. Existing Products New Products Market Penetration | Product Development | Market Development | Diversification | Existing Markets New Markets Each of these strategic options holds different opportunities and downsides for different organizations‚ so what is right for one’s business won’t necessarily be right for another. Every organization should
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Diversification Using Mergers and Acquisitions Diversification Using Mergers and Acquisitions Companies often implement corporate-level acquisition strategies to achieve product diversification that can build core competencies. In fact‚ acquisition strategy is the most common means of implementing diversification. For each strategy discussed in the book‚ including diversification and merger and acquisition strategies‚ the company creates value only when its resources‚ capabilities‚ and core competencies
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Strategy Amazon’s case 1) Explain Amazon.com’s strategy during the period 2007 to early 2010. Founded in 1995‚ Amazon makes twenty years later a turnover of $ 10 000 per second with 150 million customers with nearly 200 million records‚ it is greater than $ 60 billion annual sales. The Amazon company is really different with other companies because it is the only one to make an incredible turnover but no real profits since the beginning. Its strategy is to become the leader in books sector
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3. 3. Haier uses both related and unrelated diversification strategies. A. Describe how Haier uses activity sharing and the transfer of core competencies to create value. (related diversification strategy) Haier catapulted in the last two decades producing consumer products that are sold in similar fashion. They all shared distribution channels‚ outbound logistics‚ and sales forces. Haier was able to develop core competencies through effective activity sharing of primary activities resulting
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the world ’s largest white goods manufacturer since 2010. Haier has built a portfolio of unrelated diversification through mergers and acquisitions and had decentralizing its operational risks. Haier is confronting few strategic issues which might be more rational and effective in its logistics structure‚ competitiveness‚ and the challenges of technological innovation when the unrelated diversification of its business units are into greater expansion. In this study‚ the models like PEST‚ SWOT‚ Porter
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Maximilian Scheufler Strategic Management The Walt Disney Company: The Entertainment King[1] I. Why has Disney been successful for so long? Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business‚ the choice of how many
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Action Acquisitions & Alliances CORPORATE STRATEGY AND DIVERSIFICATION Learning objectives After reading this chapter‚ you should be able to: Key terms ● Identify alternative strategy options‚ including market penetration‚ product development‚ market development and diversification. ● Distinguish between different diversification strategies (related and conglomerate diversification) and evaluate diversification drivers. ● Assess the relative benefits of vertical integration
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