Custom Diversification Strategies essay paper writing service Buy Diversification Strategies essay paper online One of the most challenging decisions facing the management of companies is whether to diversify or not mainly due to the extreme consequences facing such a decision. Diversification can bring about both positive and negative outcomes; a company may succeed or fail. Companies choose diversification as the most viable option in increasing its market share as well as attracting and maintaining new customers. In other words, diversification is used by businesses to gain a competitive advantage over its rivals.
Hire Writer Since there are many different kinds of business strategies, articles like that written by Dess, Gupta, Hennart and Hill discusses different issues involved at different levels of strategy research, such as business, corporate, and international levels. The authors likewise looked into possibilities of integration of different strategies, such as incorporation of different dimensions of strategy.
One such strategy explored by this article is portfolio diversification. The results of the study were positive, and showed that there is certain point where the number of common stocks would no longer affect the variability of risk involved Gaumnitz The authors of this article discuss the nature of portfolio approach.
Moreover, they state the general consensus that risk is an integral part of portfolio analysis. Portfolio diversification can be observed in the process of industrialization. This endeavor requires certain factors that affect the effects of diversification on business.
In the article written by Brewer and Moomaw, they discuss a study they conducted to determine the relationships of factors involved in industrial diversification.
These factors include economic stability and city size. They also posit that disagreements in findings of various studies on the relationship of economic stability and city size could be attributed to differences in definition of diversification used in such studies.
Portfolio diversification could be taken in a large scale, such as a global scale. Thus, in the article written by Coe, one way of global portfolio diversification is discussed. After analyzing the performance of companies using these varied forms of investments over a nine-year timeframe, Coe concluded that investment in American Depository Receipts may be the best option since it provides better risk-adjusted returns Coe On the other hand, the article of Cosset and Suret concerns itself with the task of explaining the benefits of portfolio investment.
Cosset and Suret explain the benefits of portfolio investment, particularly in politically risky countries. The benefits were evaluated using data on ratings of political risk and international stock returns for a period of nine years.
It reports a study that aims to gain knowledge that would help in the determination of the possible gain from portfolio diversification in four Latin American countries.
These countries include Chile, Argentina, Colombia, and Brazil. These countries were selected because they are developing countries, which share the character of having limited savings allotted for investment. To determine the extent of potential gains from portfolio diversification, different portfolio strategies were examined and tested Lessard Another relevant article in portfolio diversification is that written by Sirmans and Worsala This article is a discussion and critical review of the literature on the subject of international direct investment, particularly in real estate.
This article is a response to the perception that there is no study that analyzes the benefits of diversification in international real estate. This article likewise notes that real estate assets may be analyzed in two ways: Statman challenges the widely accepted theory of Evans and Archer that about ten stocks would be sufficient.
Statman posits in this article that 30 stocks or more are required to complete a well-diversified portfolio Statman Westerfield notes in this article that there have been studies claiming that portfolio diversification has the effect of reducing portfolio return variability. However, he believes that variability could have many different definitions, and such differences could account for the opinion that diversification reduced return viability Westerfield Finally, Yang and Hyland critically examines the different sources of imitation among firms.
The authors cite three levels of sources of imitation, namely, firm level, market level, and industry level.
How to cite this page Choose cite format:Diversification Strategies Diversification Strategies According to leslutinsduphoenix.com, “Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories.
Corporate Level Strategy – Diversification Essay. Diversification strategy is used to increase the firm’s value by improving its overall performance.
Value here is created here either through related diversification (my report) or through unrelated diversification (which will be discussed further) when the strategy allows a company’s.
- Introduction This essay plans to focus on the corporate strategy of Microsoft, and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage. 1. 0 Executive Summary The purpose of this paper is to discourse the cardinal strategic issues that LVMH face and set up some future recommendations that can be implemented in order for LVMH to stay successful in the luxury industry.
Diversification Strategies Let’s explain diversification of a company first; I myself thought it meant something totally different. A diversified company is a company that has multiple unrelated businesses. Essays on Diversification.
Diversification Strategies Overview The paper researches two corporations, viz. 3M Company and Sears, Roebuck and Co., which have had different outcomes (one successful and the other unsuccessful) with their diversification strategies. The paper compares and contrasts each corporation’s diversification strategy.