Abstract Sony Corporation established its global reputation with the introduction of the transistor radio in 1957. For over forty years it has manufactured electronics hardware. In the past five years it has diversified into entertainment, software and a host of related and converging fields. The diversification has been successful because Sony has identified all of its new projects with its brand name and reputation for quality: Its core competency in electronics has been at the heart of its successful diversification.
Abstract The paper discusses diversification and specialization in the banking industry. The paper further examines the intricacies of diversification and specialization as they relate to modern society, focusing on the various elements of the concepts in finance. The paper applies these theories to the global marketplace, as well as to the local communities to determine which method of banking is more effective.
From the Paper "With the onset of globalization and the lending fraud of the past few decades to consider it would appear that consumers in America would be more supportive of strength in banking, than in dealing with small financial institutions. Large banks that have often times become consolidated and diversified their portfolios have reported significant gains in their value, and continued success because of diversification in the industry. Specialized bankers and financial institutions, however, have maintained their place in the local markets with a stronger sense of serving the average citizen, in spite of newsworthy events that would have them closed. The question for many Americans today is whether the specialized bank is more effective in meeting the needs of the public, or whether banks that have become diversified provide a more stable environment for financial considerations."
Abstract This essay begins by examining the concepts of diversification and synergy as well as the general motives for diversification and then goes on to discuss whether synergy is the only justification for diversification. Throughout the paper, the topic is discussed from a strategic perspective, but the conclusion also comments briefly on the justifications for diversification from a managerial perspective.
Introduction
Concepts
Synergy
Diversification Motives for Diversification Is Synergy the Only Justification for Diversification?
Can Growth and Risk Reduction Justify Diversification?
Growth
Risk Reduction
Can Profitability via Synergy Justify Diversification?
Sharing Activities
Transfer of Skills
Is Synergy the Only Contributor to Profitability?
Conclusion
From the Paper "Diversification is a vital element of modern dynamic business, thus, a significant issue for enterprises and their management to deal with. Post-war diversification trends (see table 1 and 2) confirm this notion and also indicate that diversification activity will continue its significance in future. From 1949 to 1974 the share of the Fortune 500 companies that diversified into related business increased from 25.7% to 42.3%. Similarly, companies that diversified into unrelated businesses accounted for merely 4.1% in 1949, but for 20.7% in 1974."
Tags: industrial, activity, strategies, corporations, compete, market, general, electric
This paper analyzes the business strategy known as 'diversification', attempting to answer the question of whether or not diversification is profitable.
Abstract The paper first defines diversification, then identifies the positive and negative aspects of diversification as a business plan. The writer looks into the effects of diversification using examples from international companies and industries. The paper studies what strategic management experts write about diversification and discusses whether or not diversification is a successful business strategy.
From the Paper "Whether a business should adopt the strategy of diversification or not is a question which brought about considerable debate among the great management thinkers all over the world. While Ansoff and Howe supported the idea thinkers like Kastens and Porter opposed it. Its true that diversification has a lot of advantages and some disadvantages as well. In this assignment I am going to discuss the problems and advantages of the diversification strategy in some detail. However as Mintzberg said, ??that no matter what its basis, every related diversification is also fundamentally an unrelated one. That is no matter what is common between two different businesses, many other things are not.?(In Mintezberg & Quinn, 1991:79). Hence I am not analysing the different types of diversification and its merits and demerits separately; instead I am taking diversification as a whole for this analysis."
Abstract This study examines corporate diversification and the impact of social identity theory on the growth and stability of an organization. Further, it proposes to identify key areas where additional study can help to further understand the impact of diversification and social identity.
Diversification in Organizations
Variables Affecting Diversity
Significance of Diversification Strategy
Structure and Diversification Understanding Social Identity Theory and Culture
From the Paper "The key components that result in the success or failure of an organization are the organizational goals and objectives. (Morgan, 1997) Without aims (for an organization), there is no logical reason for bringing people, money, and other resources together. The ideal utilization of material resources required, maximizing the performance and the productivity of the organization, while at the same time reducing cost, are the important guidelines. Organizations should realize the effects of personality and individuality on the morale of any group or department."
This paper examines the recent trend of corporate diversification while focusing on Siemens AG, initially an electronics wholesaler, it now controls interests dealing in computers, cell phones, transportation, power and medicine.
Abstract This paper analyzes the continual influence of globalization which has resulted in mergers of various global corporations and thus the growth of multi-business firms have become more prevalent. This paper explores the success of such industries in the world arena, paying attention to how these firms have developed and prospered. This paper details and focuses on the diversification of Siemens AG. While initially a wholesale dealer in electronic goods within the communications industry, Siemens AG has since expanded outwards to many different areas. It now controls business interests dealing with computers, cell phones, transportation, power, medicine and more. The writer of this paper discusses the problems that many diversified companies face including how to incorporate new acquisitions into the overall corporate strategy of a particular business.
From the Paper "The growth of Siemens AG starts with an analysis of their financial strategy. Since Siemens AG began with its patent of the telegraph technology it has been a dominant force within the telecommunications industry. As such information and communication sector is the original cash cow industry. The strategy of corporation such as Siemens AG is to diversify in such a way that they extract excess cash from businesses that are cash cows and allow them to be invested in businesses in other sectors that will be able to become an economic force when it gains a high hold of the market share. When these "question marks" reach the stage of becoming big earners they could one day become a cash cow too. Siemens AG has been expanding outward to many different arenas, as such over the years it had become dominant in many different sectors of the commercial realm."
Abstract The paper discusses the competitive MP3 market and reveals that Apple's strategy of diversification has been one of its greatest strengths that set it apart from the original downloadable pioneer, Napster. The paper asserts that Apple CEO, Steve Jobs, has shown a competitive edge in diversifying his company far beyond its original sphere of computer expertise. The paper notes several potential concerns facing the Apple Company but concludes that at present the company's financial portfolio reflects none of these concerns and may very well continue to grow.
From the Paper "Once it was hard to imagine any company threatening the unparalleled market standing of mighty Microsoft--but the Apple Corporation, the brainchild of Steve Jobs, has accomplished this impressive feat. Despite the recent downturn in the American economy, Apple's revenues have been stronger than many company's wildest dreams. According to Apple's April 23, 2008 Second Quarter Results, which ended March 29, 2008, the Apple Company netted $7.51 billion, or a net quarterly profit of $1.05 billion, at $1.16 per diluted share. These results compare to Apple's revenue of $5.26 billion and net quarterly profit of $770 million or $.87 per diluted share in the same quarter only a year ago. In 2007, company sales were up 24%, company earnings were up 75%, and the stock price skyrocketed 146%."
Abstract This paper discusses the diversification of businesses. It looks at possible reasons for diversification in businesses in general and then focuses on the reasons behind the diversification of Boeing in the 1990s. The paper discusses the ways in which the diversification of Boeing was successful and improved the quality of their business, as well as details the management of the organization.
From the Paper "The effects of the diversification campaign begun in the 1990s were felt immediately after its launch. For example, in 1995, 71 % of the company's revenues were obtained from commercial airplanes and from Boeing's presence in this industry, while in 2000, this was down to 61 % . This means that in the period from 1995 to 2000, Boeing's acquisitions and diversification campaign already amounted for 10 % of the organization's overall revenues. This is expected to continue in the future as well, covering the areas already mentioned."
Abstract The paper poses and answers five questions regarding the Tata Group and its recent leader, Ratan Tata. The questions examine diversification strategies in general. They include such matters as the importance of brand building, criticism of diversification, strategies in the face of market liberalization and the differences between micro and macro-management.
From the Paper "More careful analysis and close attention than is possible in a single decade will be required before we can determine exactly which of Ratan Tata's initiatives for the Tata group could be considered especially successful when weighed against the others. However, in analyzing several of his initiatives - creation of a brand name, building equity interlocks among Tata companies, sale of part of TIL to Jardine Matheson, and revitalization of TAS - that one of his policies stands out above the others as especially positive for the company. The most positive and important move that Tata undertook was to create a group brand for all companies and industries with the Tata Group, within the family of business loosely affiliated by the personality of Ratan Tata's predecessor. The Tata Group is currently based in one hundred nations and employs roughly 250,000 people ("Global Firm")."
Abstract This paper discusses the diversification strategy that Boeing has successfully implemented in order to address the increased competition among the aviation industry's competitors. The paper describes the design of this strategy and concludes with an organizational chart that describes how this design is appropriate for implementing Boeing's strategy.
Table of Contents:
Introduction
Boeing's Early Diversification Strategy
Boeing's Business Units
Boeing Organizational Chart
Conclusion
From the Paper "The business structure of Boeing is a successful design for this company because each division supports one another, but is distinct enough from each other to carry out the important functions required of each unit. This type of design is appropriate for carrying our any diversification strategy because as the company acquires new business opportunities, each new opportunity is capable of fitting somewhere in the business structure, while simultaneously supporting the other parts of the company. Finally, Boeing has survived as a strong competitive company in the aerospace industry as a result of the company's diversification strategy that it has implemented over the years, as well as its ability to successfully acquire other companies and merge with other companies. Other businesses would be well-advised to follow the diversification strategies of Boeing in order to be as successful as Boeing has consistently been over the years. The future of Boeing appears very bright, as long as these same strategies and standards are consistently met."
Abstract This paper discusses some of the numerous strategies and techniques that exist in which an investor may enhance his or her investment portfolio. It looks at simple and complex techniques. The paper focuses on international portfolio diversification and alternative investment vehicles as methods to use in order to reduce risk while maximizing a portfolio's performance.
Outline:
International Portfolio Diversification Alternative Investment Vehicles
Convertible securities
Use of Derivative Securities
Conclusion
From the Paper "International Portfolio Diversification is a viable strategy in terms of maximizing the performance of an investment portfolio. According to Bruno Solnik, "A well-diversified international portfolio can achieve the same risk-reduction benefits as a pure U.S. portfolio that is twice the size in terms of securities." (Solnik, 1974, pp. 48-54) The ability to minimize unsystematic risk with a much smaller portfolio certainly makes sense. Additionally, while many people view international investments as inherently risky, this risk may be diversified away just as easily as with U.S. securities."
"Another appealing fact when considering international portfolio diversification is that international securities may not be subject to some of the same systematic risks as securities in the United States. An unforeseen negative event in the local markets may have no effect on an international security; and may in fact have just the opposite effect. Granted, certain systematic risks may be common to multiple, or all, countries; however, by diversifying internationally, an investor is further hedging against risks that may be particular to a given country or region."
Abstract This paper discusses the establishment, development and current situation of the company, Spectrum Brands. It also discusses the company's initial strategies and its later diversification. In addition, the paper describes how Rayovac, or now Spectrum Brands, is well positioned to take advantage of the global market and economies of scale. The paper then looks briefly at the only major negative strategic attribute for Rayovac, which is its debt structure.
Table of Contents:
Introduction
Strategies
Diversification Global Market
Debt Structure
Overall Strategy
From the Paper "Strategically, Rayovac or now Spectrum Brands, is well positioned to take advantage of the global market and economies of scale. Because the company was already shifting its manufacturing to China, continued expansion into other industries that were doing the same offered the company an opportunity to diversify revenue streams and markets while developing complementary back office operations and infrastructure. Because of the shared retail distribution channels among its diversified product lines Rayovac can now leverage its product volumes to gain better terms from retailers. The only major negative strategic attribute for Rayovac is its debt structure that the company undertook to finance all of its acquisitions which is substantial 2 notes above $500m at 7.4% and 8.5% interest respectively and numerous other valued from 3 to several hundred million and comparable interest rates. Rayovac needs to reduce its overall debt load."
Tags: global market, debt structure, retail product
Abstract The paper outlines the early history of Amazon, its current initiatives, transportation and shipping strategies and its marketing strategies in the US. The paper then discusses Amazon's international expansions, customer relationship management and competitors. The paper examines Amazon's application of the balanced scorecard method, its human resource management, leadership system and strategic planning process, strategic position, rationale and motivation for diversification, competitive advantage and core competencies. The paper concludes with recommendations for the company's future direction.
Outline:
Introduction
Early history
Current initiatives
Transportation and shipping
Marketing strategies in the US
International expansions
Customer relationship management
Competitors
The balanced scorecard
Application of the balanced scorecard
Strategic human resource management
Leadership system
The strategic planning process
Strategic position
Rationale and motivation for diversification Strategic choices
Core competencies
Future direction
From the Paper "Amazon started its business in selling books online. In the subsequent years however, it adopted an aggressive expansion strategy that saw the online company diversify into a wide range of products and services. Because Amazon had established a strong position in so many industries with a great number of strategic alliances, the company became one of the best known brands at the beginning of 2004. The company's biggest strength was in the e-commerce business model that was at the core of all its operations. Amazon had a physical presence only to the extent that it had to build and maintain a number of distribution centers all over the world which could deliver the books online."
Abstract The following paper looks at the combined elements of chaotic transition and developmental diversification that have traditionally hovered over the Dominican Republic . The author explores the continuing influence and effect that have resulted from the merging of these divergent factors.
From the Paper "The same white beaches and blue waters that drew Columbus to discover the shores of the Dominican Republic some five hundred years ago continue to draw the interest and attention of modern researchers and writers. In recent years, a wealth of information has been studied and published regarding the various factors that have historically shaped the political, societal and economic cultures of this Caribbean country as well as the forces and influences that continue to affect it today."
Abstract Using Enron's collapse as a background, this paper endeavors to arrive at the restoration of integrity within American business organizations. It scrutinizes the reasons for Enron's downfall in the light of the auditing business, looks at their law firm's role in the collapse and Enron's lack of 401(k) diversification. The paper concludes with proposals for restoring integrity within the American business arena.
From the Paper "The fallout from Enron's collapse will influence our business systems and economy for years, maybe even decades. More importantly, the collapse will shape the American business community's psyche in ways we have only begun to imagine. Before its collapse, Enron's value rivaled Maylasia's GDP: when an entity that large implodes, there are bound to be side effects and repercussions through almost every facet of the economy. The hardest hit sectors, of course, will be institutional investing and accounting and auditing practices: a thorough examination of how company 401(k) retirement funds are managed will be necessary to determine why so many aging working Americans suddenly lost almost every penny of their 401(k)s ? their hope and their family's hope for their retirement years, just around the corner ? when Enron collapsed. Accounting companies who combine their services with consulting services ? not just Arthur Anderson: every accounting firm does it at least to a certain extent, Anderson just happened to get caught ? will need to be checked and after years of congressional grumbling, this time it may actually happen."
