Analyses of diversification moves for shareholders
What are the analyses of diversification move to generate extra value for shareholders?
Expert
The analyses for a diversification move to generate extra value for shareholders are as given follows:
i. The industry attractiveness analysis– The industry selected for diversification must be attractive enough to yield consistently excellent returns on investment.
ii. The cost of entry analysis– The price to enter the goal industry must not be so lofty as to erode the latent for the profitability.
iii. The better-off analysis– Diversifying into a new business must offer potential for the organization’s new business and the existing businesses to perform well together under a single business umbrella than they would perform working as independent stand-alone businesses.
Diversification moves that satisfy all three analyses have the maximum potential to grow shareholder value over the extended term. Diversification moves that can pass only one or two analyses are suspect.
Explain the Potential Entry of the New Competitors.
Briefly illustrate the term ‘Concern for people’?
Give a brief introduction of the term Errand Card, Concierges, Image building?
Briefly describe the Stimulus-Response Model of Behavior to understand the procedure of individual behavior?
Illustrates the Key Concept of the strategies for the Industry Leaders?
What are the challenges in the emerging industries with some unique strategy-making?
Illustrates the Key Concept of strategy-executing responsibility?
What do you understand by the word ‘Risk analysis?
Illustrates the important of a distinctive competence?
What do you mean by the term Controlling and Directing Behavior in Organizational behavior in understanding the human behavior?
18,76,764
1948301 Asked
3,689
Active Tutors
1434504
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!