Reference no: EM13964512
Please read question and response and then form your own opinion on whether you agree or disagree with the response and why....must be at least two pragraphs long.
Identify a company that has applied a diversification strategy. Was it related (concentric) or unrelated (conglomerate) diversification? Discuss what you think could have been their reasons for doing this strategy.
A form of business development that many companies at least try at one point or another is the diversification strategy. Small businesses can use this strategy to set themselves ahead of their competition by offering more in order to gain a bigger market. This strategy offers opportunities for a business to grow by increasing sales from existing customers as well as gaining new customers who you now appeal to. This strategy may work in one of two ways. 1. A business can offer an entirely new product or 2. They can modify an existing product.
Coffee shops modify their products so they are able to appeal to nearly any person by offering a range of coffee related beverages. These include regular coffee, espresso, and decaf, iced and frozen drinks. Of these different ways to prepare a coffee beverage, the industry is able to appeal to multiple types of consumers.
Another way in which coffee shops use this strategy is by adding other products to their menu. Tea is often common in a coffee shop, for the market of people who do not prefer any of the above listed coffee beverages. Also, adding small breakfast, snack, and pastry items to the menu brings in even more customers as well as encourages existing customers to make a bigger purchase.
Regardless of the route of this diversification strategy a company takes, they must be aware of the risks of each. This strategy is one of higher risk as is it easy to see the opportunity, but that opportunity may not be the right priority for the company at that given time. Perhaps the time for a company to pursue this strategy would be best when the market is growing and there is not another company who is meeting that specific demand. Otherwise, you would be entering into more competition than the company may be ready to take on.
Before deciding to implement this strategy, thorough research should be conducted to that the chances for success of such opportunity are able to be measured in order to determine if this strategy is the best route for the company.
|
Identify any unsupported assumptions or holes in argument
: Identify a belief. This can be a religious belief, an ethical belief, political belief, or any other one about which reasonable minds can disagree. Beliefs that are held by the vast majority of people (such as a widely accepted scientific fact) ar..
|
|
Heavily regulated by the environmental protection agency
: Mary works at Acme, Inc. The company is heavily regulated by the Environmental Protection Agency (EPA) and it has an audit scheduled for next week. Mary’s boss approached her and requested that she not tell anyone about the recent toxic waste spill t..
|
|
It investment cost-benefit analysis using excel
: You have been hired by the CIO of a medium-sized retail company, Honolulu Originals Inc., to do an analysis on an IT investment. Honolulu Originals sells men's and women's work and casual attire based on Hawaiian designs. It also sells fashion a..
|
|
What is the optimal size of the production run
: Radovilsky Manufacturing Company, in Hayward. California. makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders fo about 12,000 flashing lights per year and has the capability of producing 105 p..
|
|
Identify company that has applied diversification strategy
: Identify a company that has applied a diversification strategy. Was it related (concentric) or unrelated (conglomerate) diversification? Discuss what you think could have been their reasons for doing this strategy. Before deciding to implement this s..
|
|
Determine the percentage of theoretical air used
: A mixture of 80% ethane and 20% methane on a mole basis is throttled from 10MPa, 65 degrees C, to 100KPa and is fed to a combustion chamber where it undergoes complete combustion with air, which enters at 100KPa, 600K
|
|
Explain the position of the federal government
: Writing Prompt: (PR,SR) One common suggestion for improving the bureaucracy is to encourage whistle blowing. Select one of the U.S. Government employees from the list below who acted as a whistle blower. Describe the issues and consequences associate..
|
|
Workers are only motivated by money
: How would you respond if someone told you that workers are only motivated by money? What are some motivations for work according to the Christian worldview?
|
|
Demonstrates trade-off inherent in projects among cost-time
: Give an example that demonstrates the trade-off inherent in projects among cost, time, and performance. Instructions: Refer to Characteristics of Projects in the text. Use an actual example from your own experience or construct a hypothetical example..
|