Explain why might there be so much variability among the

Reference no: EM13459553

Syco is a diversified company that has six primary lines of business. Fifty percent of its revenues and 18 percent of its profits come from retailing. Most of its retail outlets are discount department stores that serve as anchor tenants for large suburban shopping malls. The remaining businesses are broken out as follows: Insurance accounts for 30 percent of revenues and 50 percent of profits; consumer credit card operations are 6 percent of sales and 17 percent of profits; 5 percent of revenues and 6 percent of profits come from its stock brokerage business; commercial and residential real estate operations generate 4 percent of sales and 8 percent of profits; finally, 5 percent of revenues and 1 percent of profits come from its online portal business. The company's management states that all these businesses are essential to its competitive future.

Q1. Why might there be so much variability among the proportion of sales versus profitability contributed by each of the businesses? Does this mean that Syco is more successful in its insurance business than in its retail business?

Q2. Develop a logical argument that would lead you to describe Syco's diversification type as related linked and another logical argument that Syco's diversification type is related constrained. For both the related linked and for the related constrained arguments, what product, technological, or distribution activities might link these businesses together?

Q3. Would you describe either of the logical arguments you developed in response to question 2 as a good corporate strategies?

Reference no: EM13459553

Questions Cloud

Plato and aristotle both argued that political life should : plato and aristotle both argued that political life should reflect humans aspirations to live in a genuinely good

Explain the results of your assessment of labor market from : write a four to seven page paper thatbulldescribe the results of your assessment of the labor market from which your

A firm hosts data-mining servers and performs data mining : a firm hosts data-mining servers and performs data mining for other companies that do not desire the costs of hardware

The mexican cession and think about where the united : the mexican cession and think about where the united states began back in 1776. what unique borders did the united

Explain why might there be so much variability among the : syco is a diversified company that has six primary lines of business. fifty percent of its revenues and 18 percent of

Winston churchill great britains prime minister in the : winston churchill great britains prime minister in the 1940s and 1950s was undersecretary of the british navy during

Explain the similarities and differences between : explain the similarities and differences between preeclampsia and an ectopic

An organization builds custom greenhouses for : part 1 compare and contrast the responsibilities of a functional manager and a project manager in a pure project-type

The time is the latest time by which a particular activity : 1. in a organization the project manager does not have complete authority over the project team.2. what is the longest

User Account

All Pages