I need help in completing a paper, the focus of the paper is diversification. Include two examples of two diversification strategies, as well as when related diversification would be a good strategy to pursue.
The idea of diversification is to reduce risk. Risk is reduced in business when a firm is able to broaden its sales base in order to gain growth initiatives. The underlying assumption is that the broadening effect of spreading the sales opportunities, thereby spreading the opportunity to gain additional sales volume allows any firm to have room for error in the event that forecasting events do not occur. Through this process, the firm provides itself a cushion, or an insurance policy of sorts, which allows for it to continue to grow sales, market share, in an ever expanding process for growing the business organically, that is, not costing itself business which already exists, but rather adopting a ...
Analyzing and reviewing diversification strategies and their effects