Choose a diversified company from any industry in Indonesia and then answer question no 3 and either question no 1 or question no 2. (Each student should choose a different company, anyone found...

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Choose a diversified company from any industry in Indonesia and then answer question no 3 and either question no 1 or question no 2. (Each student should choose a different company, anyone found choose a same company in answering the same question, both submitted forum would not be graded)


1. Evaluate that particular company’s diversification strategy and compare which of five types of corporate diversification that particular company choose, then explain why did not choose the other four types of corporate diversification strategy. Does the chosen strategy enhance shareholder value? Summarize the merits and risks of unrelated diversification strategies that particular company should consider.


2. Point out the “economies of scope” that particular company have and categorize the other eight potential economies of scope from that company’s diversification strategy might try to exploit. Indicate which of the economies of scope identified are more likely to be subject to low-cost imitation and which are less likely to be subject to low-cost imitation.


3. Explain how that particular company’s management control processes-measuring divisional performance, allocating corporate capital, and transferring intermediate products-are used to help implement a corporate diversification strategy. Then, appraise the role of management compensation in helping to implement a corporate diversification strategy.



Answered Same DayDec 26, 2021

Answer To: Choose a diversified company from any industry in Indonesia and then answer question no 3 and either...

David answered on Dec 26 2021
124 Votes
Management
Management
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1. Evaluate that particular company’s diversification strategy and compare which
of five types of corporate diversification that particular company choose, then explain why did not choose the other four types of corporate diversification strategy. Does the chosen strategy enhance shareholder value? Summarize the merits and risks of unrelated diversification strategies that particular company should consider.
International business organizations are using different diversification strategy for managing the operations in productive way. Most of the companies are using Heterogeneous (conglomerate) diversification for expanding their business and for reducing the risk. While analyzing the ITC Corporation we can understand that they effectively used Heterogeneous (conglomerate) diversification for improving the growth level.
ITC Heterogeneous (conglomerate) diversification Strategy Analysis
ITC used Heterogeneous diversification Strategy for managing the competition in a productive way. We know the fact that ITC is known as Indian Tobacco Corporation a cigarette company and they diversified in to non- tobacco product in the year of 1975. Now the company diversified the business in to five areas;
Hotels – Paperboards - Agri Business - Technology - Packaging
ITC company understand that fact that in future the sales of their core product that is...
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