Homework: Related Diversification
Related Diversification is the most popular distinction between the different types of diversification and is made with regard to how close the field of diversification is to the field of the existing business activities. Related Diversification occurs when a company adds to or expands its existing line of production or markets. For this homework, consider your own company or one that you know well. Assume your company opted to pursue a strategy of related diversification and respond to the following questions.
o What industries or product categories could if diversify into that would allow it to achieve economies of scale?
o Identify at least two or three such industries or product categories?
o Describe the specific kinds of cost savings that might accrue from entry into each?
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.