Diversification Strategies Essays

Diversification Strategies Essays Diversification Strategies Essay Diversification Strategies Essay Diversification is a signifier of corporate scheme to increase profitableness of a company through greater gross revenues volume obtained from new merchandises and new markets. It occurs either at the concern unit degree or at the corporate degree. It is a hazard direction technique that mixes a broad assortment of investings within a portfolio. It attempts to smooth out unmethodical hazard events in a group so that the positive public presentation of some investings will neutralize the negative public presentation of others. Companies may diversify for strategic aims. expected outcomes. valuable comparing between scheme and enlargement. Some companies diversify by suppressing new places through amalgamations and acquisitions whiles others diversify when there are non much growing chances for the market they are in. There are many grounds for prosecuting a variegation scheme. but most pertain to management’s desire for the organisation to turn. Companies must make up ones mind whether they want to diversify by traveling into related or unrelated concerns. They must so make up ones mind whether they want to spread out by developing the new concern or by purchasing an on-going concern. There are advantages to variegation. beyond merely spread outing one’s merchandise line. For illustration. a diversified company is potentially better insulated against a loss of gross in one concern tranche. Diversification schemes are used to spread out firms’ operations by adding markets. merchandises. services. or phases of production to the bing concern. The intent of variegation is to let the company to come in new lines of concern that are different from current operations. When the new venture is strategically related to the bing lines of concern. it is called homocentric variegation. On the other manus. when the new and the old concerns are unrelated it is classified as Conglomerate variegation which occurs when there is no common yarn of strategic tantrum or relationship between the new and old lines of concern. intending the new and old concerns are unrelated. Compare and contrast the two businesses- core concern. their size. financials. planetary presence. usage of e-business ( selling. gross revenues. etc. ) . Johnson A ; Johnson Inc. – Successful Johnson A ; Johnson is an American transnational pharmaceutical company founded in 1886. fabrication unfertile surgical supplies. Its nucleus concern is the fabrication of medical devices and consumer packaged goods. Its common stock is a constituent of the Dow Jones Industrial Average. The company is listed among the Fortune 500. The corporation has grown to hold more than 250 runing companies in 60 states using about 116. 000 people. bring forthing medical specialties and medical devices. every bit good as consumer merchandises like healthful goods. babe shampoo and dental floss. National Semiconductor Corporation – Unsuccessful National Semiconductor Company has an international repute for semiconducting materials. The pioneering bit shaper offers a assortment of incorporate circuits ( ICs ) . particularly linear and mixed-signal ( intermixing parallel and digital maps ) french friess. Its merchandises focus on parallel french friess. which transform physical information – visible radiation. sound. force per unit area. even radio moving ridges – into informations that a computing machine can utilize. National Semi’s french friess are used in radio. networking. medical. solar. automotive. and industrial applications. It gets more than 75 % of gross revenues from clients outside the US. mostly to contract makers that serve its OEM clients. In the seventiess. the company tried to do electronic consumer merchandises in add-on to the semi-conductors that went inside them. Compare and contrast their results ( one successful. one unsuccessful ) Johnson A ; Johnson Johnson A ; Johnson is a diversified health care company that develops. industries and markets merchandises in three primary lines of concern: Pharmaceuticals ( 41 % of gross revenues ) . Medical Devices and Diagnostics ( 35 % ) and Consumer Products. Since the 1900s. the company has pursued steady variegation. It added consumer merchandises in the 1920s and created a separate division for surgical merchandises in 1941 which became Ethicon Inc. It expanded into pharmaceuticals with the purchase of McNeil Laboratories Inc. . Cilag. and Janssen Pharmaceuticals. and into women’s healthful merchandises and toilet articless in the 1970s and 1980s. In recent old ages. Johnson A ; Johnson has expanded into such diverse countries as biopharmaceuticals. orthopaedic devices. and Internet publication. Recently. Johnson A ; Johnson has purchased Pfizer’s Consumer Healthcare section. The passage from Pfizer to Johnson and Johnson was completed December 18. 2006. National Semiconductor Corporation The company wasn’t suited for retail fabrication. and was crushed by companies that were. By the clip digital tickers became popular in America ; National had been driven from the market place. agony losingss that overshadowed its success in semiconducting materials. Analyze the three primary grounds for the different results. First. Johnson A ; Johnson diversified into points that are strategically related to the company’s bing lines of concern. Johnson A ; Johnson is a diversified health care company that develops. industries and markets merchandises in three primary lines of concern: pharmaceuticals. medical devices and nosologies and Consumer Products. On the other manus. National Semiconductor Corporation entered into the production of unrelated merchandises which is non common yarn of strategic tantrum or relationship between the new and old lines of concern. intending the new and old concerns are unrelated. Second. Johnson A ; Johnson diversified through amalgamations and acquisitions of new companies. For case. it expanded into pharmaceuticals with the purchase of McNeil Laboratories Inc. . Cilag. and Janssen Pharmaceuticals. and into women’s healthful merchandises and toilet articless in the 1970s and 1980s. In recent old ages. Johnson A ; Johnson has expanded into such diverse countries as biopharmaceuticals. orthopaedic devices. and Internet publication. Recently. Johnson A ; Johnson has purchased Pfizer’s Consumer Healthcare section. The passage from Pfizer to Johnson and Johnson was completed December 18. 2006. On the other manus. National Semiconductor Corporation entered into variegation to do electronic consumer merchandises in add-on to the semi-conductors that went inside them. They did non ship on growing scheme through acquisition and amalgamations. They had stiff resistance and were crushed by companies suited for retail fabrication. Last. Johnson A ; Johnson variegation scheme is good matched to the strengths of its top direction squad members which are factored into the success of that scheme. On the other manus. National Semiconductor Company top executives did non pull off variegation efficaciously. Recommend two actions the unsuccessful 1 could hold made to do their variegation venture successful First is that National Semiconductor should guarantee a variegation scheme which is good matched to the strengths of its top direction squad members and factored into the success of that scheme. Different variegation schemes require different accomplishments on the portion of a company’s top directors. and that factors should be taken into consideration before houses are joined. For case. the success of a amalgamation may non depend merely on how incorporate the connection houses become. but besides on how good suited top executives are to pull off that attempt. Secondly National Semiconductor should diversify into related merchandises where they can command the market. To reason. I must state that if variegation scheme is done strategically to associate to the company’s bing line of concern or diversified through amalgamations and acquisitions of new companies with the support of its top direction squad members. so its aim of growing and hazard pickings can be achieved.

Cultural Geography Overview

Cultural Geography Overview Cultural geography is one of the two major branches of geography (versus physical geography) and is often called human geography. Cultural geography is the study of the many cultural aspects found throughout the world and how they relate to the spaces and places where they originate and then travel as people continually move across various areas. What Is Cultural Geography? Some of the main cultural phenomena studied in cultural geography include language, religion, different economic and governmental structures, art, music, and other cultural aspects that explain how and/or why people function as they do in the areas in which they live. Globalization is also becoming increasingly important to this field as it is allowing these specific aspects of culture to easily travel across the globe. Cultural landscapes are also important because they link culture to the physical environments in which people live. This is vital because it can either limit or nurture the development of various aspects of culture. For instance, people living in a rural area are often more culturally tied to the natural environment around them than those living in a large metropolitan area. This is generally the focus of the Man-Land Tradition in the Four Traditions of geography and studies human impact on nature, the impact of nature on humans, and people’s perception of the environment. Cultural geography developed out of the University of California, Berkeley and was led by Carl Sauer. He used landscapes as the defining unit of geographic study and said that cultures develop because of the landscape but also help to develop the landscape as well. In addition, his work and the cultural geography of today is highly qualitative rather than quantitative - a main tenant of physical geography. Today, cultural geography is still practiced and more specialized fields within it such as feminist geography, childrens geography, tourism studies, urban geography, the geography of sexuality and space, and political geography have developed to further aid in the study of cultural practices and human activities as they relate spatially to the world.