Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
"Diversification means entering product - markets different from those the firm is currently engaged in"
Member rating: No Rating | Words: | Submitted: Mon Dec 22 2003
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
Diversification "Diversification means entering product - markets different from those the firm is currently engaged in" (Aaker, 1984). As stated by Haner (1984), diversification is an expansion through additions of new product lines and services which are countercyclical, counter seasonal and/or offering opportunities to offset the impact of technological change or global competition. Internal development, acquisitions and mergers are approaches to diversification. Moreover, in the global world of today, diversification is everywhere. A lot of companies are diversified, from huge multinational corporations to small family businesses, and many of them to a huge span. There a lot of reasons why companies diversify, and some of them are the following. Diversifications help companies to convert present internal costs into future revenue producers. Moreover, as said by Aaker (1984), a basic diversification motivation is to improve ROI (Return on Investment) by moving into business areas with high ROI prospects....
To see the full version of this document, and 144,847 others
