Management and Organizational Studies 4410A/B Chapter Notes - Chapter 3: Cash Flow, Fixed Cost, Variable Cost

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: John White

Document Summary

Diversification strategies related and unrelated diversification http://www. yourarticlelibrary. com/marketing/diversification-strategies-related-and- unrelated-diversification/43621/ Related diversification: potential to attain synergies by the exchange or sharing of skills or resources, one business unit must have skills or resources that are exportable to another company of business, should do the following steps, Identify resources the business has and needs: find a partner who can supply what you need. Implementation problems: happens when the diversification move involves integrating two organizations that have fundamental differences and/or because one of the two organizations lack the ability or motivation to make diversification work, violations of antitrust laws. Unrelated diversification: lacks commonality, strategies, manage and allocate cash flow, can allocate the cash flows among the sbus, obtain high roi, enter high growth business areas, obtain a bargain" price, acquire a business at a bargain price. Investment is low, but the return is high.