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2 . Diversified businesses: advantages d disadvantages

 2 . Varied companies: positive aspects n down sides Essay

-Diversified corporations: A company that has multiple, unrelated businesses. Not related businesses are those which require exceptional management expertise, have different end customers and produce diverse products or provide different services. -Some of the most popular diversified companies include Hitachi, Toshiba and Lotte Group – which consists of over 60 business units, engaged in this kind of diverse industrial sectors as candy manufacturing, resorts, fast food, retail, financial services, large chemicals, electronic devices, IT, publishing, and entertainment. Or in Vietnam: Hoang Anh Gia Lai group which start up as small home furniture producer then your company diversified into additional industries such as: rubber, football financial..

-Advantages:

•One of the benefits associated with being a varied company is the fact it buffers a company via dramatic changes in any one particular industry sector •Companies which might be diversified are more likely to see connections between different markets that may be exploited, for instance , because they are active in multiple markets plus they track tendencies carefully. •Diversification can also let a company to keep up with changing marketplace dynamics more quickly. -Disadvantages:

•Diversification has the maximum level of risk and requires one of the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of knowledge in the additional skills and tactics required. Consequently , the company puts itself within a great uncertainty. •this model is also more unlikely to enable stockholders to realize significant gains or losses because it is not singularly focused on one particular business. -Because of the substantial risks discussed above, many organisations attempting to mix up have generated failure. However , there are a few illustrations of powerful diversification: •Walt Disney shifted from making animated movies to idea parks and vacation houses •Canon diversified from a camera-making company into generating an entirely fresh range of...

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