留学生essay写作—产品多元化战略的协同效应

1、http:/ 留学生论文专业定制代写网站留学生essay写作产品多元化战略的协同效应Disclaimer:.Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.IntroductionNowadays large firms have to survive in the face of economic competition.They have to keep an eye on the competitorsperformance.Managers try to progress and run their businesses well in order to grow and be competitive.When a large firm has reached a mature life-cycle stag

2、e it often has to explore the possibility of how to still grow.Ansoff(cited by Johnson,Scholes and Whittington,1998)presents four basic growth alternatives:a)increased market penetration,b)market development,c)product development and d)diversification.Choosing the right path is major decision for managers.Finding out if there are reasons which may lead a large firm to prefer diversification,more specific,product diversification as the growth alternative strategy instead of other strategies is a

3、main question.Firms who spread their activities and businesses across different product markets that are more or less related between each other are said to follow a product diversification strategy.(Pils,2009,p.10)Product diversification strategy definition has evolved during the last decades.Some definitions are evolutional and complementary but some others contradict each other(Goold and Luchs,1993).Therefore,it is important for managers to have a clear definition.The benefits of product dive

4、rsification have been divided into two categories depending on the type of diversification:related or unrelated.Related product diversification refers to entries into new products or service businesses that have a connection to the firms existing markets(Peng,2008).Researches(Hoskisson,2007)and business experiences(such as Mondi AG,Procter&Gamble,CHR plc.,etc.)have proven that some of the benefits of this type of diversification are:l Operational synergy:economies of scalel Utilizing excess prod

5、uctive capacityl Reinvesting earningsUnrelated product diversification refers to the development of products or services beyond the current capabilities and value network(Johnson et al.2008).Some of the benefits and reasons for this type of diversification are:l Financial synergy:economies of scopel Increasing market powerl Spreading risk across a range of businessesThe challenge for any large firm,once product diversification is chosen as the growth path,is to decide which type of diversificati

6、on is most appropriate and what strategic plan to follow.Product diversification gives also other challenges to managers such as the need of new skills to manage a wider group of businesses,new techniques,sometimes new facilities,large capital to test the viability of the new product,produce it and market the product,hire and train new employees,etc.Therefore,diversification has some inconveniences as it involves taking a step into a territory where the parameters are unknown to the firm(Peng,20

7、08).Product diversification can be achieved by acquiring an existing firm in the business it wants to enter,starting up a new business subsidiary or entering into joint ventures.For large firms knowing the different growth strategies including its benefits and inconveniences is fundamental to giving managers practical recommendations.For a better understanding of these fundamental issues this research will analyze whether related or unrelated product diversification strategy leads large firms to

8、 exploit more synergies and creates more value for the firm.Based on this research question,the following sub-questions are going to be addressed in this research:l Should large firms,such as Mondi AG,aim to focus on related or unrelated businesses to exploit operational synergies?l How is Mondis life cycle related to theright timeof diversifying?l Which recommendations on product diversification strategy can be given to large firms regarding financial synergy?To answer the above questions,I wil

9、l present a detailed and methodical literature review on product diversification strategy concept,categories,synergies,its relation with large firmslife cycle and explore the effects of a financial crisis on large firms who have chosen this type of diversification to identify the appropriate strategy for the research goal.This research is based on the hypothesis that related product diversification is the right strategy to be chosen if operational synergies are to be achieved while for financial synergies,unrelated product diversification strategies are more appropriate.The strength of this hypothesis is tested through a case study of a large firm:The Mondi Group.The Mondi Group has been chosen as the large firm to be explored in this research because it is an international firm with one of its largest teams and headquarters in Austria.Trend,an Austrian financial magazi

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