Explain the factors that influence expansion strategies:concentration strategy or diversification strategy.

Expert Solution

Answer)

Factors that influence the diversification startegy

Attractiveness of the market-If there is an opportunity in a relatively new market with potential gains,diversification can be useful.
Hedging-At times diversification is used to mitigate risk of operating in one or few domains,diversification can be a saviour in such cases.
Show of strengrth-Diversification can be seen by many as a way to solidify your position by signaling other competitors that you are a big player not to be messed with.
Diversification can help you with costs for your other businesses with backward and forward intehration.

Factors that influence the concentration startegy

Focussed approach-If a company is known for a thing,it will try to focus all its energy in that thing to become a top player in that area.
Easy to manage-Concentrated business can be easy to manage in terms of executive team requirements,few and defined layers of management.
Investors' point of view-Investors can see this as a good move to focus on star of the business and let go of not so profitable ventures.

Answer is complete.Thank you!

Rahul Sunny answered 7 months ago

Briefly explain the importance of international expansion as a viable diversification strategy.

400-450 words Briefly explain the importance of international expansion as a viable diversification strategy

Describe the logic and methodology of “preloading" studies, as a strategy for determining factors that influence...

Describe the logic and methodology of “preloading" studies, as a strategy for determining factors that influence satiety, the reduced willingness to eat (lower “hunger” or “appetite”) following a meal. Use an example from research (either human or animal) to illustrate how this method has demonstrated the impact of a specific food characteristic (e.g. the food’s color, or taste, or macronutrient composition) on satiety. Additionally, can preloading studies be used to investigate the impact of non-biological (e.g. social or psychological) influences...

Explain the factors that influence the organizational structure of MNCs.

There are three approach of business level strategy : diversification strategy, cost leadership strategy and and...

There are three approach of business level strategy : diversification strategy, cost leadership strategy and and focus strategy. Please explain what is diversification strategy and cost leadership strategy and give example in coffee industry in Indonesia. (30 points

There are three approach of corporate strategy, that is : portfolio strategy, BCG Matrix, and diversification...

There are three approach of corporate strategy, that is : portfolio strategy, BCG Matrix, and diversification strategy The Indofood company bought the ownership of PT Indolakto (Indomilk), what approach of corporate strategy? Please explain your answer using references about approach of corporate strategy.

Describe the “number of businesses” cost of the diversification strategy.

Critically analyse the factors that influence capital structure decisions and corporate finance strategy within a company....

Critically analyse the factors that influence capital structure decisions and corporate finance strategy within a company. (700 words) Take note of the word count Work must be typed

1. What factors influence a country’s international product strategy? write atleast 500 words.

What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain...

What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain why. Does Tesla Energy’s new business meet the three tests of corporate advantage?

Question