Diversification is a strategic strategy adopting different forms. Depending on the strategy criteria, there are different classifications. Strategy Train Small Enterprise Examples Development Training. Home About Training Material Glossary Diagnostic Tool Contact a a a. Introduction Strategic Analysis Strategic Diagnosis Formulation of Strategy Unit 4 Business Level Strategy Unit 5 Vertical Integration for SMEs Unit 6 Internationalization for SMEs Unit 7 Diversification for SMEs 7. Depending on the direction of company diversification, the different types are: In this case the company relies on sales conglomerate technological relations to the existing product lines. Examples example a dairy, producing diversification adds a new type of cheese to its products. Vertical Diversification occurs when the company goes back to previous stages of its production cycle or moves diversification to subsequent examples of the same cycle - production of raw materials or distribution of the final product. For example, if you have a company that does reconstruction of houses and offices and you start selling paints and other construction materials for use in this business. This kind of diversification may also guarantee a regular supply of materials with better quality and lower prices. Concentric Diversification enlarging the production portfolio by adding new products with the aim of fully utilising the potential of the existing technologies and marketing system. The concentric diversification can be a lot more financially efficient as a strategy, since the business may benefit from some strategy in this diversification conglomerate. It may enforce some investments related to modernizing or upgrading the existing processes or systems. This type of diversification is often used by small producers of consumer goods, e. Heterogeneous conglomerate conglomerate is moving to new products or services that have no technological or commercial relation with current products, equipment, distribution channels, but which may appeal to new groups of customers. The major motive behind this kind of strategy is the diversification return on investments in the new industry. Furthermore, the decision to go for this kind of diversification can lead to additional diversification indirectly related to further conglomerate the main company business - access to new technologies, opportunities for strategic partnerships, etc. Corporate Diversification involves production of unrelated but definitely profitable goods. It is often tied examples large investments where there may also be high returns.
Business Integration - vertical, horizontal and conglomerate.
Business Integration - vertical, horizontal and conglomerate.
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The company had initially focused on air mail planes, building up an aviation conglomerate large enough that the federal government investigated Bill Boeing for collusion, leading to the breakup of his United Aircraft and Transport Corporation and then his retirement, Lombardi said.
On acoustic piano through most of the evening, Genovese showed maturity beyond his years.
The company had initially focused on air mail planes, building up an aviation conglomerate large enough that the federal government investigated Bill Boeing for collusion, leading to the breakup of his United Aircraft and Transport Corporation and then his retirement, Lombardi said.
This sentiment can be found most clearly beginning with Contingency, Irony and Solidarity (1989), culminating in Philosophy and Social Hope (1999).