Diversification Strategy Essays (Examples)

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Diversification
General Electric has long worked within a conglomerate structure that gives it a significant amount of diversification. The company breaks down its diversification in its annual reports. GE earned $148.6 billion in 2014, coming in the following segments:

The largest group is GE Capital, which itself has a high level of diversification:

The company's diversification approach is generally strong. First, GE has done this for decades and is therefore more familiar with running a conglomerate than most companies. There is a historical competitive advantage that comes with this. As one of the first conglomerates, GE has always been attractive as a place for the world's best executives, and it continues to draw in top level executive talent on account of this. Further, GE is fairly ruthless with respect to what businesses it wants to be in. The company explicitly states that they only want to operate in businesses where they think they….

LVMH
Identification Evaluation of the main problems.

Sometimes, the best laid plans of mice and men go awry. The case of Bernard Arnault's involvement in LVMH is one of dazzling brilliance on one hand and intractable egotism on the other.

Arnault's stated strategy seems to make sense: acquire brands epitomizing the combination of classically tasteful luxury with forward-looking modernism. He looks for brands that are traditional in feel, but constantly renewing and reinventing themselves. However, some of his acquisitions for LVMH have seemingly deviated from this otherwise successful strategy. So, first of all, these deviations are problematic for the LVMH cachet.

Secondly, when even seemingly sensible acquisitions have failed to deliver value to the firm and its investors, Arnault has been reticent in divesting them. It is unclear why someone seemingly gifted with such business savvy would fail to unload an unprofitable, burdensome brand. This is an issue which needs explication.

The firm has also….

However, during that time, the car sales industry was experiencing a recession and Virgin Cars was caught up in the midst of this recession. Therefore, even though through franchise agreements with manufacturers they could stock many cars without paying for them, car sales slumped considerably thus the company was not able to turn a profit.
Among the actions that could have been taken by Virgin Cars to make it successful was taking time to design the business plan and site their stores in order to make sure they gain the most competitive advantage. Secondly, by researching the car sales industry and profile the market before starting the business. By so doing, they would have been able to set more realistic expectations for car sales and device strategies to improve sales despite the recession.

Conclusion

Diversification as a strategy for business growth usually gives rise to successful companies. The strategy of diversification must….

Business
When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.

• Assess the advantages and disadvantages of each strategy and evaluate how to build a competitive advantage. (you may use notes on textbook)

¢elect a specific organization in a chosen industry or sector and provide examples.

When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.

Multi-domestic,

The firm views itself as operating within the context of numerous independent subsidiaries each of which concentrates on its own domestic locality and market.

The advantages are the following:

innovation from local R&D

Entrepreneurial spirit

Products tailored to individual countries

High quality due to backward integration

However, challenges include

High costs due to tailored products and duplication across countries

The innovation from the local R&D groups resulted in products that were R&D driven instead of market driven.

Decentralized control meant that national buy-in was required before introducing….


Micro control refers to the formation and the type of "clan" within the organization and the behaviour of the employees. It could be stated that, focusing the attention towards the internal functioning of the organization is a method of controlling the outcome of the company's efforts regarding the services which it provides its clients with. In other words micro control operations are necessary as a sort of basis for the macro control ones.

It is true that in terms of efficacy the company should focus more on the difference between input and output, but it is just as true that the internal management of the human resources is fundamental, especially under the circumstances in which the company has changed its approach to business and pretends to value the employee just as much as the customer. This is all the more true if we take into consideration the fact that the company….

Diversification in Small and Medium Enterprises
Adjustment and enewal in the Aftermath of the Iraq War: A Case Study of Strategic and Functional Orientation for Diversification in a SME

In this chapter, discussion will further explore how National United Group's (NUG) location decisions and its position in an industrial cluster are critical to understanding its strategic orientation, and also the design, implementation, and outcome of its diversification strategies in the post Iraqi war period. The results of the study are discussed as they relate to the theoretical models and framework examined in the literature review. This section addresses the findings related to the fundamental questions asked of study participants, NUG managers and NUG employees, and the findings related to the examination of archival information.

The chapter discussion is organized according to the frameworks and theoretical models that were introduced in the literature review, and discussion explicitly refers to the questions asked of NUG….

Annotated Bibliography on Value Creation Through Diversification Glvan, A., Pindado, J., & De La Torre, C. (2014). Diversification: A value-creating or value-destroying strategy? Evidence from the Eurozone countries. Journal of Financial Management, Markets, and Institutions, 2(1), 43-64.
This research is aimed at showing the relationship between company value and product diversification strategy. The study digs deep into the types and levels of diversification to determine the real value addition that can be achieved using this strategy. The method used to calculate the benefits of diversification is regression, and the diversification measures used include the Revenue-based Herfindahl Index and Total Entropy. Other traditional variables that impact firms' value are also included in the function.
The study results showed that diversification impacts the firm's value, but a breakpoint marks the maximum benefits. Going beyond this point drops the value of the company. A more significant section of previous research is based outside the UK and US, and….

conditioned the key decisions and behaviors of individuals and groups within National United Group (NUG) as these forces relate to strategic diversification. Synergies resulting from an early merger resulted in a firm better able to address the demands of an expanding market. Importantly, the merger enabled diversification beyond spare auto parts distribution.
Domestic labor markets in Iraq are governed by traditional practices that are regionally idiosyncratic and that permit considerable leeway in local decision-making. International automotive firms signaled interest in NUG's products and services, but Iraq's fractious social-political environment generated substantive security challenges and disruption in their distributorship and marketing arrangements, impacting its ability to meet both domestic and international market demands. NGU's decentralized management has failed to understand changes to the local market dynamics in the post-war recovery period, which resulted in business opportunity cost and jeopardized the firm's financial viability and sustainable growth.

Chapter 4 provides a conceptual framework….

Diversification Strategies
PAGES 5 WORDS 1866

Tera vs. Netflix
TEVA VS. NETFLIX

Teva, which you likely do not even know (Northrup, 2010), has won its business game by betting its success on products with a true future, while Netflix, stuck with a well-known brand name, appears to be dying the death of overconfidence. Technically, Teva could still do less well than anticipated because the market they are in -- the production of generic drugs and the ingredients that allow for making generic drugs -- is coming up for grabs. But right now they are seen as a clear success. Netflix, on the other hand, has not actually failed -- at least not yet. But they do seem to be doing their best to act like they should. At least one well-known investor has sounded my warnings and believes that Netflix has all but disappeared, even in the face of a number of possible industry opportunities (ChartProphet, 2011).

Teva and….

Diversification
How important is it for you to diversify your investment portfolio? How would you diversify your investment portfolio?

Although 'the stock market' is often spoken of as a collective entity, in reality it is made up of a many different types of industry subsets. Furthermore, stocks are not the only assets investors should have: bonds, CDs, and more conservative and risky investments make up the full 'buffet' of available ways to allocate funds. The right 'menu' of investments will vary depending upon the investor's age, comfort with risk, goals, and other factors. "To build a diversified portfolio, an investor should look for assets whose returns haven't historically moved in the same direction, and, ideally, assets whose returns move in the opposite direction. This way, even if a portion of your portfolio is declining, the rest of your portfolio is designed to be growing. Thus, you can potentially offset the impact of….

Companies and Diversification
Akpinar, O, and Yigit, I. (2016). The Relationship Between Diversification Strategy and Firm Performance in Developed and Emerging Economy Contexts: Evidence from Turkey, Italy And the Netherlands. Journal of Economic and Social Development, 3(2), 78-86.

This research encompassed a close look at data from 166 firms in the Netherlands, 265 firms in Italy, and 128 firms in Turkey (using data from 2007-2011). The point of the research was to explore the difference between various types of diversification and production performance in those three nations. Akpinar (professor, Kocaseli University in Kocaseli Turkey), and Yigit (business faculty member at Marmara University in Turkey) explain that "Related Diversification" is market expansion into new areas, and "Unrelated Diversification" is expansion into a new market "having no relation with the existing one" (Akpinar, et al., 2016).

The hypothesis used by the authors: there would be a positive relationship between "performance and related entropy index" vis-a-vis….

Samsung's Marketing Strategy
Marketing management is an important component for the success and profitability of a company in its respective industry or market. Samsung, a South Korean company, has faced intense competition from Apple and other smartphone companies across the globe. Since 2014, Samsung's profit and market share have significantly declined due to intense competition from Apple and Chinese players. However, Samsung has experienced tremendous profitability and increased in the past year because of the adoption of new strategies. According to Jung -- a (2016), Samsung Electronics predicted its best quarterly results in over two years in June 2016. The company experienced increased profitability at a time when the smartphone sector or industry was characterized by declining sales. While Apple, LG Electronics, and Chinese players struggled to cope with the decreased demand for smartphones, Samsung enjoyed high margins of operating profits estimated at $7bn for the June 2016 quarter (Jung-a, 2016).

The….

Strategic Management
The Case for Diversification

Deltacom/Earthlink is facing a challenging operating environment. As a regional player in an intensely-competitive market, we face an uncertain future. We acquired Deltacom in order to facilitate future growth, but a quick look at our financials indicates that our growth has flatlined and our profits declined to almost nothing last year (MSN Moneycentral, 2013). One of the issues is that there was considerable overlap between Earthlink and Deltacom, and we felt that this would provide us with synergies, in reality it simply made us bigger without enhancing our operations or reducing our risk. At this point, we probably need a new strategic direction in order to ensure our future survival. Diversification is one of the best strategies to achieve this.

In portfolio management, diversification is a strategy where a number of different types of investments are created in a single portfolio (Investopedia, 2013). The underlying logic is….

Most critical is the ability to capitalize on core competencies while also alleviating any cultural conflicts inherent in pursuing any diversification strategy (Doving, Gooderham, 2008). Related diversifications are related to core competencies can be seen in many industry value chains, especially in the financial services industry (Milberg, 2008). As related diversifications reduce the cultural, system and process risk of a merger or acquisition, they have been proven empirically to be more successful in certain industries, especially financial services (Doving, Gooderham, 2008).
References

Erik Doving, aul N. Gooderham. (2008). Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices. Strategic Management Journal, 29(8), 841. Retrieved August 6, 2008, from ABI/INFORM Global database. (Document ID: 1499091871).

atrick Marren (2007). High-functioning business strategy. The Journal of Business Strategy, 28(6), 37-39. Retrieved August 7, 2008, from ABI/INFORM Global database. (Document ID: 1369331501).

William Milberg (2008). Shifting sources and uses of….


Cost leadership

Attracting more customers and gaining financial advantage over the competition as profits would increase

4

Forces the company to drastically reduce costs, meaning that product quality could suffer demises

-4

0

6.

Focus strategy

Can achieve either of cost advantage or differentiation

4

Addresses a niche market

-4

0

7.

Differentiation strategy

Product uniqueness which allows for the charging of a premium price to cover for the additionally incurred expenditure

5

Additional costs which will reduce overall financial gains (they will however be recuperated from the premium price)

2

3

7. Description of the Selected Strategy

Based on the analysis conducted at the previous stage, it becomes obvious that the most adequate course of action at this stage is that of implementing differentiation strategies. These actions basically translate into the promotion of new products onto existent markets, meaning that Porter's differentiation strategy is the analogue of Ansoff's product development strategy. The table above even reveals that both these strategies have received the highest scores, meaning that they are the….

Original Thesis Statement:

In today's ever-evolving financial landscape, strategic investment decisions are paramount for maximizing portfolio growth and mitigating risks. By meticulously analyzing market trends, evaluating investment opportunities, and implementing a well-diversified approach, investors can navigate market volatility and achieve their financial goals.

Refined Thesis Statement:

In the dynamic and multifaceted world of investing, the judicious allocation of capital is crucial for achieving optimal portfolio performance. Through a comprehensive analysis of market conditions, the evaluation of potential investments, and the implementation of a prudent diversification strategy, discerning investors can navigate market uncertainties, mitigate risks, and maximize returns in the pursuit of their financial....

1. Analyzing Nestle's diversification strategy: How has Nestle expanded its product portfolio and entered new markets to drive growth and increase market share?

2. The role of acquisitions and mergers in Nestle's corporate strategy: Discuss how Nestle has used M&A activities to drive growth, acquire new capabilities, and enter new markets.

3. Examining Nestle's sustainability strategy: How has Nestle incorporated sustainability and ethical practices into its corporate strategy to create long-term value and achieve competitive advantage?

4. Evaluating Nestle's global expansion strategy: How has Nestle expanded its international presence and adapted its business model to different markets and cultural contexts?

5. The impact of....

Here are some potential essay topics on corporate level strategies of Nestle:

1. Analyze and evaluate Nestle's diversification strategy. How has Nestle expanded its product portfolio over the years and how has this contributed to its overall growth and success?

2. Assess Nestle's international expansion strategies. How has Nestle entered new markets and expanded its global presence? What challenges has the company faced in pursuing a global strategy?

3. Examine Nestle's strategic alliances and partnerships. How has Nestle collaborated with other companies to strengthen its competitive position and drive growth? What benefits has Nestle derived from these strategic alliances?

4. Investigate Nestle's sustainability and....

1. An analysis of Nestle's diversification strategy and its impact on the company's growth and profitability.

2. Exploring the role of acquisitions and mergers in Nestle's corporate strategy and its effect on competition in the market.

3. Investigating Nestle's focus on sustainability and social responsibility in its corporate strategy and the benefits it brings to the company.

4. Evaluating Nestle's international expansion strategy and its success in entering new markets and adapting to local cultures.

5. Analyzing Nestle's product portfolio management strategy and its impact on maintaining a competitive edge in the industry.

6. Examining Nestle's pricing and branding strategies and how they contribute to....

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4 Pages
Term Paper

Sports - College

The Diversification Strategy of General Electric

Words: 1307
Length: 4 Pages
Type: Term Paper

Diversification General Electric has long worked within a conglomerate structure that gives it a significant amount of diversification. The company breaks down its diversification in its annual reports. GE earned…

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6 Pages
Case Study

Business

Case Study LVMH's Diversification Strategy Into Luxury Goods

Words: 1873
Length: 6 Pages
Type: Case Study

LVMH Identification Evaluation of the main problems. Sometimes, the best laid plans of mice and men go awry. The case of Bernard Arnault's involvement in LVMH is one of dazzling brilliance…

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5 Pages
Term Paper

Business

Diversification Strategies the Ansoff Matrix

Words: 1782
Length: 5 Pages
Type: Term Paper

However, during that time, the car sales industry was experiencing a recession and Virgin Cars was caught up in the midst of this recession. Therefore, even though through…

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3 Pages
Term Paper

Business

Diversification Strategies

Words: 830
Length: 3 Pages
Type: Term Paper

Business When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational. • Assess the advantages and disadvantages of each strategy and…

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3 Pages
Thesis

Business

HRM Issues and Diversification Strategies

Words: 994
Length: 3 Pages
Type: Thesis

Micro control refers to the formation and the type of "clan" within the organization and the behaviour of the employees. It could be stated that, focusing the attention towards…

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8 Pages
Conclusion

Business

Diversification in Small and Medium Enterprises

Words: 2100
Length: 8 Pages
Type: Conclusion

Diversification in Small and Medium Enterprises Adjustment and enewal in the Aftermath of the Iraq War: A Case Study of Strategic and Functional Orientation for Diversification in a SME In this…

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3 Pages
Annotated Bibliography

Business

Diversification and Value Creation

Words: 817
Length: 3 Pages
Type: Annotated Bibliography

Annotated Bibliography on Value Creation Through Diversification Glvan, A., Pindado, J., & De La Torre, C. (2014). Diversification: A value-creating or value-destroying strategy? Evidence from the Eurozone countries. Journal of Financial…

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3 Pages
Introduction

Business

Diversification in Small and Medium Enterprises

Words: 882
Length: 3 Pages
Type: Introduction

conditioned the key decisions and behaviors of individuals and groups within National United Group (NUG) as these forces relate to strategic diversification. Synergies resulting from an early merger…

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5 Pages
Research Paper

Business

Diversification Strategies

Words: 1866
Length: 5 Pages
Type: Research Paper

Tera vs. Netflix TEVA VS. NETFLIX Teva, which you likely do not even know (Northrup, 2010), has won its business game by betting its success on products with a true future,…

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2 Pages
Capstone Project

Economics

Diversification How Important Is it for You

Words: 674
Length: 2 Pages
Type: Capstone Project

Diversification How important is it for you to diversify your investment portfolio? How would you diversify your investment portfolio? Although 'the stock market' is often spoken of as a collective entity,…

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4 Pages
Essay

Business - Business Theory

How Diversification can help CEOs Financially

Words: 1058
Length: 4 Pages
Type: Essay

Companies and Diversification Akpinar, O, and Yigit, I. (2016). The Relationship Between Diversification Strategy and Firm Performance in Developed and Emerging Economy Contexts: Evidence from Turkey, Italy And the Netherlands.…

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2 Pages
Essay

Marketing

Samsung New Marketing Strategy

Words: 652
Length: 2 Pages
Type: Essay

Samsung's Marketing Strategy Marketing management is an important component for the success and profitability of a company in its respective industry or market. Samsung, a South Korean company, has faced…

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5 Pages
Research Paper

Business

Strategic Management the Case for Diversification Deltacom Earthlink

Words: 1611
Length: 5 Pages
Type: Research Paper

Strategic Management The Case for Diversification Deltacom/Earthlink is facing a challenging operating environment. As a regional player in an intensely-competitive market, we face an uncertain future. We acquired Deltacom in order…

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1 Pages
Thesis

Business

Business Strategy What Role Does

Words: 411
Length: 1 Pages
Type: Thesis

Most critical is the ability to capitalize on core competencies while also alleviating any cultural conflicts inherent in pursuing any diversification strategy (Doving, Gooderham, 2008). Related diversifications are…

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8 Pages
Research Proposal

Business

Competitive Strategy for a Fast-Paced

Words: 2293
Length: 8 Pages
Type: Research Proposal

Cost leadership Attracting more customers and gaining financial advantage over the competition as profits would increase 4 Forces the company to drastically reduce costs, meaning that product quality could suffer demises -4 0 6. Focus strategy Can…

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