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1
Amit, Raphael, and Joshua Livnat. "A Concept of Conglomerate Diversification." Journal of Management 14, no. 4 (1988): 593–604. http://dx.doi.org/10.1177/014920638801400409.
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This study develops and tests a new concept of conglomerate diversification that reflects afirm's sensitivity to the cyclical behavior and differential amplitude of economic sectors throughout the business cycle. The measure is shown to describe unique aspects of conglomerate diversification that are not captured by other commonly used SIC-based diversification measures or by the Rumelt categorization scheme. The measure is also used to evaluate the association between conglomerate diversification and the reduction of operating risk. The results indicate that conglomerates that diversify the effects of the business cycle through the proper selection of business segments are characterized by lower operating risk than otherfirms.
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Sinha, Deepak K. "On conglomerate diversification." Atlantic Economic Journal 27, no. 1 (1999): 115. http://dx.doi.org/10.1007/bf02299183.
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Ajao, Mayowa Gabriel, and George Abayomi KOKUMO-OYAKHIRE. "CORPORATE DIVERSIFICATION AND FINANCIAL PERFORMANCE OF CONGLOMERATE FIRMS IN NIGERIA." Journal of Business Studies and Mangement Review 5, no. 1 (2021): 91–101. http://dx.doi.org/10.22437/jbsmr.v5i1.16665.
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This study examined the effect of corporate diversification on the financial performance of conglomerate firms in Nigeria. The nine (9) conglomerates firms listed on the Nigerian Stock Exchange as of 2019 formed the population and sample size for this study from 2011 to 2019. Corporate diversification was measured by; product, operational and geographical diversification. Panel least-square analytical method was used. Two-panel co-integration models were developed for empirical analysis to measure financial performance using Return of Assets (Book Value) and Tobin's Q (Market Value). The study's findings revealed that product diversification has a positive impact on the financial performance of conglomerates in Nigeria. However, operational and geographical diversification showed a negative but significant relationship between corporate diversification and the financial performance of conglomerates in Nigeria. It was concluded that corporate diversification has a dominant-negative impact on financial performance. However, only one form of corporate diversification (product) was positively related to financial performance. Therefore, the study recommends that conglomerates focus more on implementing geographical diversification strategy than other types of diversification as it encompasses a great deal of product and services promotions, which is key to improving annual sales and product awareness.
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JOURNAL, ISJEM. "A study on working capital management of a conglomerate: with reference to ITC LMT." International Scientific Journal of Engineering and Management 03, no. 03 (2024): 1–9. http://dx.doi.org/10.55041/isjem01404.
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This study digs into the complex dynamics of working capital management inside conglomerates, with a special focus on ITC Limited. As conglomerates like ITC operate in a complex environment, successfully managing working capital becomes critical to their financial health and sustainability. However, conglomerates' distinct qualities, such as diverse industry exposure, worldwide expansion, and the incorporation of sustainability practises, need a thorough evaluation of their working capital strategy. By empirically analysing the complexities of working capital management inside conglomerates, this study fills a large research vacuum in the existing literature. It explores the following major areas using a combination of quantitative and qualitative analyses. Working Capital in a Diversified Portfolio: The research looks at how ITC Limited, a conglomerate with holdings in FMCG, hospitality, agriculture, and tobacco, manages its working capital in the face of sectoral heterogeneity. It investigates whether sector-specific factors have a major impact on working capital decisions. Geographic Diversification: The study investigates the impact of geographic diversification on the working capital management of ITC Limited, taking into account both domestic and international businesses. Financial Instrument Utilization: The study investigates the strategic use of financial instruments such as short-term debt, commercial paper, and derivatives in optimizing the conglomerate's working capital needs. Sustainability Integration: This study looks into the incorporation of sustainability and ESG concepts into ITC Limited's working capital management methods, emphasizing the alignment between profitability and environmental and social responsibility. In conclusion, this research paper not only enriches the understanding of working capital management in the context of conglomerates but also provides insights that can be extended to diversified corporations across various industries and regions. The findings contribute to the development of nuanced working capital management frameworks that align with the diverse and evolving needs of conglomerates, further illuminating the path to financial success and sustainability in an intricate and ever-changing business landscape. Keywords Working capital management, Conglomerates, Diversified portfolios, Sectoral Heterogeneity, Geographic Diversification, Sustainability Integration, ESG (Environmental, Social, and Governance), Nuanced Working Capital Management Frameworks.
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Boumosleh, Anwar, Abdallah Dah, and Mustafa Dah. "Internal Capital Markets And Equity Restructuring." Journal of Applied Business Research (JABR) 28, no. 6 (2012): 1171. http://dx.doi.org/10.19030/jabr.v28i6.7402.
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Inefficient internal capital market is often blamed for conglomerate diversification discount. While the positive market reaction to spin-off announcements is in conformity with that claim, the abnormal market return on tracking stock announcements is certainly not. This paper investigates the possibility of a bright side for internal capital markets in conglomerates that track business units as a mean of equity restructuring. This paper finds no evidence of a diversification discount for firms with a tracking stock. Partial support on the presence of diversification discount is found for a pair-matched sample of spin-off firms. This paper also finds evidence on more efficient internal capital markets for the sample of tracking-stock firms. The results may suggest that the conglomerates choice between tracking business units or spin-off of business units depends on the efficient allocation of internally generated funds.
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AMMANN, MANUEL, and MICHAEL VERHOFEN. "THE CONGLOMERATE DISCOUNT: A NEW EXPLANATION BASED ON CREDIT RISK." International Journal of Theoretical and Applied Finance 09, no. 08 (2006): 1201–14. http://dx.doi.org/10.1142/s0219024906004025.
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We present a simple new explanation for the diversification discount in the valuation of firms. We demonstrate that, ceteris paribus, limited liability of equity holders is sufficient to explain a diversification discount. To derive this result, we use a credit risk model based on the value of the firm's assets. We show that a conglomerate can be regarded as an option on a portfolio of assets. By splitting up the conglomerate, the investor receives a portfolio of options on assets. The conglomerate discount arises because the value of a portfolio of options is always equal to or higher than the value of an option on a portfolio. The magnitude of the conglomerate discount depends on the number of business units and their correlation, as well as their volatility, among other factors.
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Kim, Kong-Hee. "Institutional Contexts and Corporate Diversification Strategy." Journal of Management Research 16, no. 1 (2024): 15. http://dx.doi.org/10.5296/jmr.v16i1.21681.
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There has been a great deal of controversies concerning the performance implications of conglomerate (business group) strategy, often prevalent in emerging economies. The aim of this research is to develop a theoretical model that prescribes the viability of corporate diversification strategy in relation to institutional contexts. The theoretical model suggests that conglomerate strategy will be positively related to firm performance in institutional contexts where the functions of formal market controls and informal normative controls are inefficient, whereas focused/related diversification strategy will be positively related to firm performance in institutional contexts characterized by efficient market and normative controls. The framework synthesizing major theoretical perspectives will contribute to better understanding of the connection between institutional contexts and corporate diversification strategy.
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Hyland, David C., and Lance Nail. "Intersecurity wealth redistribution in conglomerate mergers: A re-examination over three decades." Corporate Ownership and Control 3, no. 3 (2006): 178–89. http://dx.doi.org/10.22495/cocv3i3c1p2.
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In this paper we re-examine the predicted wealth effects for the stockholders and bondholders involved in conglomerate mergers. Seminal studies in finance offer several hypotheses about the valuation consequences of corporate diversification and firm performance. Recent empirical studies document the negative relationship between corporate diversification and firm performance. We evaluate the predictive accuracy of these earlier theories given these more recent empirical results. Our results indicate that the wealth predictions of neither the wealth creation theory of Lewellen (1971) nor the wealth redistribution theories of Higgins and Schall (1975) or Galai and Masulis (1976) hold for bondholders and stockholders in whole. Bondholder wealth changes are virtually independent of stockholder wealth changes in conglomerate mergers in the 1970s and 1980s. However, a significantly negative relationship exists between stockholder and bondholder wealth changes in conglomerate mergers occurring in the 1990s. Conglomerate mergers did not result in significant stock or bond wealth creation in any of the three decades studied. Over the last decade, capital markets have penalized the stockholders in conglomerate mergers with significant wealth losses. Bondholder wealth changes are insignificantly positive, resulting in significant net wealth losses for conglomerate mergers in the 1990s.
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Nguyen, Thi Xuan Trang. "Corporate governance and conglomerate diversification strategy – evidence from Vietnam." International Journal of Emerging Markets 13, no. 6 (2018): 1578–96. http://dx.doi.org/10.1108/ijoem-10-2016-0260.
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Purpose The purpose of this paper is to examine the impact of internal corporate governance mechanisms, including interest alignment and control devices, on the unrelated diversification level in Vietnam. Additionally, the moderation of free cash flow (FCF) on these relationships is also tested. Design/methodology/approach The study is based on a balanced panel data set of 70 listed companies in both stock markets, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, in Vietnam for the years 2007–2014, which gives 560 observations in total. Findings The results show that if executive ownership for CEOs is increased, then the extent of diversification is likely to be reduced. However, the link between unrelated diversification level and executive stock option, another interest alignment device, cannot be confirmed. Among three control devices (level of blockholder ownership, board composition and separation of CEO and chairman positions), the study finds a positive connection between diversification and blockholder ownership, and statistically insignificant relations between the conglomerate diversification level and board composition, or CEO duality. Additionally, this study discovers a negative link between diversification and state ownership, although there is no evidence to support the change to the effect of each internal corporate governance mechanism on the diversification level of a firm between high and low FCF. Practical implications The research can be a useful reference not only for investors and managers but also for policy makers in Vietnam. This study explores the relationship among corporate governance, diversification and firm value in Vietnam, where the topics related to effectiveness of corporate governance mechanisms to public companies has been increasingly attractive to researchers since the default of Vietnam Shipbuilding Industry Group (Vinashin) happened in 2010 and the Circular No. 121/2012/TT-BTC on 26 July 2012 of the Vietnamese Ministry of Finance was issued with regulations on corporate governance applicable to listed firms in this country. Originality/value This research, first, enriches current literature on the relationship between corporate governance and firm diversification. It can be considered as a contribution to the related topic with an example of Vietnam, a developing country in Asia. Second, the research continues to prove non-unification in results showing the relationship between corporate governance and conglomerate diversification among different nations. Third, it provides a potential input for future research works on the moderation of FCF to the effects of corporate governance on diversification.
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Montgomery, Cynthia A. "Corporate Diversification." Journal of Economic Perspectives 8, no. 3 (1994): 163–78. http://dx.doi.org/10.1257/jep.8.3.163.
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This paper documents the significant presence of diversified firms in the U.S. economy and presents three views on why firms diversify. The market power view argues that firms diversify to wield conglomerate power across markets. The agency view argues that diversification is undertaken by managers pursuing their own interests at the expense of the firm's owners. The resource view argues that firms diversify in response to excess capacity in productive factors. A review of recent empirical research finds little support for the market-power view and a substantial amount of evidence that is consistent with the agency and resource views.
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Olalekan, Adebowale ASAOLU, and Livingstone GILBERT Laguo. "DIVERSIFICATION AND PERFORMANCE OF SELECTED PHARMACEUTICAL SHOPS IN ILORIN, KWARA STATE." GPH-International Journal of Business Management 06, no. 07 (2023): 131–45. https://doi.org/10.5281/zenodo.8141397.
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The study examined the effect of diversification onthe performance of selected pharmaceutical shops in Ilorin, Kwara State. A survey research design was adopted for the study. A structured questionnaire was used to collect data for the study. The study adopted the test-retest reliability method and content validity. The population of the study consists of 166 employees from 12 selected pharmaceutical firms.The sample size of 117 was determined by using Yamane’s (1968) sample size determination formula.Findings showed that conglomerate diversification has a positive effect on the performance of pharmaceutical stores (ß = 0.654, 0.000 < 0.05). Concentric diversification has a positive effect on the performance of pharmaceutical stores (ß = 0.216, 0.019 < 0.05).The study concluded that70% of the change in performance of selected pharmaceutical shopswas brought about by the dimensions of diversification. Organizations were recommended to use diversification as a survival strategy to outperform their rivals.
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Tanasiichuk, Alona, Olha Hromova, Anastasiia Abdullaieva, Yulia Holovchuk, and Kateryna Sokoliuk. "Influence of Transformational Economic Processes on Marketing Management by an International Diversified Conglomerate Enterprise." European Journal of Sustainable Development 8, no. 3 (2019): 448. http://dx.doi.org/10.14207/ejsd.2019.v8n3p448.
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In this article it is substantiated the necessity of radical changes study in the practice of domestic agricultural enterprises managing, creation of a new functional and organizational structure that will maximally facilitate the marketing strategy of business diversification by the agrarian enterprise of Ukraine. It is analyzed agrarian enterprises efficiency of activity under the conditions of the transformation processes, it is determined that the leaders of the domestic and world markets of agrarian products are agroholdings with a rigid management structure, and their marketing goals are a decisive factor while making choice of markets under the conditions of diversification activities. It is substantiated that the formation of an international diversified company of agrarian business provides equally to participating enterprises the use of common resources, redistribution of resources between structural units operating on one financial result, the possible loss of one enterprise is compensated by the profit of the group as a whole. Reformation of agrarian enterprises of Ukraine process is analyzed; in particular, in the case of farms in the context of international business diversification; it is determined the necessity of creating a new organizational structure of management by the agrarian enterprise. It is grounded the creation of a functional and organizational mechanism for an international diversified conglomerate enterprise activity in order to ensure the stability of its functioning under the conditions of the transformation processes.It is proposed a new structure of functional and organizational management an international diversified conglomerate company on the basis of the developed marketing mechanism of enterprise management under the conditions of international diversification. It is substantiated that in Ukraine, the formation of such new international diversified conglomerate enterprises from small enterprises, by grouping farms (which by their number in Ukraine is most) will provide a positive result from overcoming the grinding of domestic agrarian business, consolidation of the agrarian sector and creating the opportunity to benefit from the budget of Ukraine from international diversified conglomerate business structures. Keywords: transformational economic processes, international marketing, globalization, marketing management, international diversified conglomerate enterprise, business consolidation.
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Noam, Eli. "Beyond the mogul: From media conglomerates to portfolio media." Journalism 19, no. 8 (2017): 1096–130. http://dx.doi.org/10.1177/1464884917725941.
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The article shows that outside ownership of media moves in stages – from media properties as the mouthpiece for personal and business interests, to a second stage of conglomerates seeking economic “synergies” of performance, to a third stage dominated by financial portfolio diversification. These phases of outside media ownership correspond to the stages of economic development in that country.The article finds that in rich countries, the ownership of media by industrial companies as a way to create political influence has been declining. The second phase, based on economic synergies, has become a less significant driver, too. On the other hand, there has been a significant growth of cross-ownership through financial intermediaries. In contrast, the media systems of emerging and developing countries are still operating in the first two phases of cross-ownership, centered on projection of influence and on conglomerate business synergies.It is quite likely that these dynamics will lead to a “capture gap” between emerging and rich societies. Media in the former would be significantly more captured through the seekers of personal influence and conglomerate synergies, while media in the latter are subject to professional investors imperatives of profitability, growth, predictability, and fit into portfolio diversification. The same financial institutions from rich countries are also likely to seek acquisitions in the emerging markets by leapfrogging the two other stages. The likely responses are restrictions on foreign ownership of media. Domestic conglomerates will step in and assume control. Media capture will then become patriotic.The article is fact-based and provides details on the media assets of non-media companies in 26 countries accounting for about 60% of the world’s population and over 80% of its economy.
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Bala, Ahmed Jinjri, Anand Shankar Raja, and Kabiru Isa Dandago. "The Mediating Effect of Intellectual Capital on Corporate Governance and Performance of Conglomerates in Nigeria." SEISENSE Journal of Management 2, no. 3 (2019): 16–29. http://dx.doi.org/10.33215/sjom.v2i3.109.
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Purpose: The nature of diversification in the form of conglomerates is the research theme for this study. Thus, CG’s functions on FP on conglomerates firms of Nigerian economy was studied while applying IC as the mediating variable. 
 Design/Methodology: This research depends on archival data collected from the NSE. Firms have been chosen based on the convenient sampling method and an important parameter for judgment is Conglomerated firms. In order to get genuine results, ten years of financial data have been taken into consideration. Multiple regression technique was used to analyze the data. The software used for analysis was STATA version 14.0.
 Results: The model I of the study disclose a pessimistic and insignificant impact of board size and board independence on IC using VAIC as a proxy. In contrast, model II results disclosed that the performance of the firms was impacted by the board’s size and institutional ownership. Implying that, the greater the size of the firm as well as more shares owned by institutional shareholders the higher the profit.
 Practical Implications: Nigeria being one of the growing economies now is dependent on knowledge assets and hence it has a positive effect on the firm’s performance. Conglomeration is seen even between employee’s skills of both industries, which give a positive outcome. Hence, firms under conglomerate tags have a strong impact in relation to intellectual capital.
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Nishad, Mr Anandkar Roopnarayan, Prof Zakir A Farooqui, and Dr Ashwini Kshirsagar. "JSW Paints PVT LTD -Marketing Strategy." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 08, no. 01 (2024): 1–13. http://dx.doi.org/10.55041/ijsrem28156.
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MUMBAI, MAY 2, 2019: India’s leading business conglomerate, JSW Group has entered the paints business in India with JSW Paints. This is part of the Group’s diversification into consumer facing businesses and a historic first time entry of an Indian conglomerate into the organized paints sector. With the launch of its paints business, JSW Group aims to make a comprehensive offering for consumer homes through steel, cement, furniture and now paints
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Saparbaiuly, D. "Business Diversification Strategies as a Tool for Enhancing Competitiveness in Times of Crisis." Bulletin of Science and Practice 11, no. 6 (2025): 464–73. https://doi.org/10.33619/2414-2948/115/56.
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The main approaches to diversification are considered, including horizontal, vertical and conglomerate strategies, and their impact on financial stability and market sustainability. Successful cases of diversification in various industries are analyzed, with risk management, investment allocation and adaptability considered as critical factors for sustainable growth. The results highlight that a well-planned diversification strategy can mitigate economic risks, open up new sources of income and strengthen a company’s market position in unstable conditions.
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SERVAES, HENRI. "The Value of Diversification During the Conglomerate Merger Wave." Journal of Finance 51, no. 4 (1996): 1201–25. http://dx.doi.org/10.1111/j.1540-6261.1996.tb04067.x.
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Buzhymska, Kateryna, Iryna Tsaruk, Svitlana Biriuchenko, Olha Pashchenko, and Ihor Svitlyshyn. "Impact of diversification on strategic business management." Scientific Bulletin of Mukachevo State University Series “Economics” 11, no. 3 (2024): 34–46. http://dx.doi.org/10.52566/msu-econ3.2024.34.
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This study focused on analysing the role of diversification as a tool that enables businesses to adapt to changes in the external environment, mitigate risks, and ensure sustainable development. The study explored the main types of diversification: horizontal, vertical, concentric, and conglomerate. Each type of strategy has its own distinct characteristics, benefits, and risks. Horizontal diversification allows companies to expand their product range by utilising existing resources and knowledge, facilitating rapid entry into new markets. Vertical diversification offers the opportunity to control the supply chain or distribution channels, reducing reliance on external partners and enhancing operational efficiency. Concentric diversification enables companies to expand their business by leveraging existing competencies and technologies, thereby minimising risks. Conglomerate diversification, although the most risky, allows businesses to enter new industries unrelated to their core operations, potentially increasing profits. Successful use of different diversification strategies to achieve market leadership is illustrated by companies such as Disney, Tesla, and Mironivsky Hliboproduct (MHP). Tesla employed all types of diversification, controlling every stage of the production of its electric vehicles, including the creation of infrastructure for charging stations. Disney also implemented diversification by expanding its presence through the acquisition of studios, the development of theme parks, and the launch of streaming services. MHP demonstrated examples of diversification by controlling the entire production chain from raw materials to finished products, while also expanding its range of meat products. The conclusion emphasised the importance of a cautious and well-considered approach when selecting a diversification strategy, considering available resources, market opportunities, and the specific characteristics of the business. Successful implementation of a diversification strategy allows companies not only to reduce risks but also to strengthen their position in the face of volatile economic conditions and competitive pressure
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Kravchenko M. S., Kolovorotnyі S. A., and Shatalov O. V. "Economic Determinants of Strategic Management of Integration and Diversification Processes of Corporate Enterprises." Management of Economy: Theory and Practice. Chumachenko’s Annals, no. 2023 (2023): 105–18. http://dx.doi.org/10.37405/2221-1187.2023.105-118.
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The work outlines tools for horizontal, vertical and conglomerate diversification and the formation of recommendations for building a corporate integrated system, which corporate systems will be able to use in their activities. The study highlighted the importance of diversification activities in today’s conditions, characterized its main integration manifestations in the activities of corporate systems in trade activities. The key alternatives when choosing types of strategy (unrelated, combined and related diversification strategies) are presented and the main factors that should be taken into account when choosing them are defined. The key tools and features of the implementation of vertical, horizontal and conglomerate diversification, technological and economic for corporate trade networks in trade are characterized. The necessity of dividing the corporate integrated system into subsystems of strategic and operational management is clarified. The main tools for carrying out diversification activities are presented and characterized. In particular, the advantages and disadvantages of starting a new line of business within an existing enterprise, merging and/or taking over capital, creating strategic partnerships and/or new organizations, applying franchising, investing, etc., are characterized. It was determined that the issue of mutually coordinated, balanced, effective functioning of all elements of the corporate integrated system is directly correlated with the modernization of management models in corporate systems, which is a direction for further research.
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Turabamariya, Christine, and Eugenia Irechukwu. "Service Diversification Strategies and Performance of Hospitality Industry in Rwanda: A Case of Centre National d’Education Transformatrice (CENETRA)." Journal of Strategic Management 6, no. 6 (2022): 35–62. http://dx.doi.org/10.53819/81018102t6039.
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In current competitive, changing business world, with the aim to increase performance firms are constantly struggling to satisfy various needs of customers and maintain a competitive advantage in the market. As a strategic alternative, diversification is used by business organisations targeting to outpace new entrant and or existing firms. The main objective of this study is to examine the influence of service diversification strategy on organisational performance of hospitality industry in Rwanda. From the main objective the researcher derived three concise targets pointing to three types of diversification strategy. The targets were to determine consecutively the influence of concentric, horizontal and conglomerate strategies on the performance of CENETRA Hotel. Findings of this research are useful to hotels and other accommodation establishments owners who intend to gain a competitive advantage, sustain and grow their businesses diversifying their services. The research results will inform the Private Sector Federation (PSF) and Rwanda Development Board (RDB) on priorities to be considered in developing hospitality business sector. Moreover it will broaden research field and the domain of diversification strategies where influence of a variety of services can have on firm’s performance. Descriptive design also known as statistical design and analytical design was used by the researcher. This study targeted 54 staff members, 4 management team members CENETRA Hotel and 47 permanent customers at CENETRA. It adopted probability stratified, random and purposive sampling technics. Questionnaires and interviews were used to collect primary information and documentary review was applied to collect secondary data and SPSS version 21 was used for data analysis. Descriptive statistics with the mean, standard deviation, and Pearson’s correlation coefficient were utilised and inferential statistics with regression analysis were applied for data interpretation. Findings revealed that concentric diversification strategy is very highly correlated with organisational performance with Pearson’s correlation value= 0.935, p value=0.001<0.05. Moreover results uncovered that horizontal diversification strategy is significantly positively correlated organisational performance. A mean of 38% of total respondents strongly agreed, 57% agreed, with presented statements with a correlation coefficient value of 0.929 p=0.004<0.05. Conglomerate diversification strategy is positively correlated to organisational performance as quantified by Pearson’s correlation coefficient of 0.725 p=0.002<0.05. These statistical figures were supported by four managers answers of interview who affirmed that service diversification strategies has a positive influence on performance of hospitality industries in Rwanda. Thus the research established that service diversification strategy highly influence the performance of hospitality industries in Rwanda. It is recommended to hospitality organisations to diversify their services implementing concentric, horizontal and conglomerate diversification strategies, to PSF and RDB to consider service diversification strategies in policy making in order to strengthen more hospitality industry in Rwanda. Key words: Service Diversification Strategy, Hospitality, Organizational Performance
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Mensi, Walid, Adel Boubaker, and Chaker Aloui. "Board effectiveness, conglomerate diversification, and firm performance: The tunisian case." International Journal of Management Science and Engineering Management 7, no. 3 (2012): 174–82. http://dx.doi.org/10.1080/17509653.2012.10671221.
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Nangia, V. K., Rajat Agarawal, Vinay Sharma, and K. Srinivasa Reddy. "Conglomerate diversification through cross-continent acquisition: Vedanta weds Cairn India." Emerald Emerging Markets Case Studies 1, no. 1 (2011): 1–15. http://dx.doi.org/10.1108/20450621111127430.
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Subject area corporate policy and strategy – mergers and acquisitions. Study level/applicability Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business. Case overview Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance. Expected learning outcomes Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy. Supplementary materials Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.
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Wanyonyi, Rebecca Nasimiyu. "EFFECT OF INVESTMENT DIVERSIFICATION ON FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE KENYA." International Journal of Finance and Accounting 3, no. 2 (2018): 57. http://dx.doi.org/10.47604/ijfa.750.
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The general objective of study was to examine investment diversification effect on the financial performance of agricultural firms listed at NSE. The study employed descriptive research design. The study population consisted of seven listed agricultural firms at NSE. The study employed a census approach because of the small number of agricultural listed firms at the NSE. Secondary panel data was used for a period covering seven years (2011-2017).R squared (coefficient of determination) was 52.80%. which showed that investment diversification explain 52.80% of the dependent variable variations that is financial performance The study also found that horizontal diversification, concentric diversification, conglomerate diversification and vertical diversification had a positive relationship with financial performance. The study suggested that firms should look for better avenues to mitigate the risk of doing business or their operations. Through diversification, a firm is not dependent on a limited number of products, locations, or markets in order to remain competitive and survive in the dynamic economic environment.
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Hughes, Kirsty. "CONCENTRATION AND DIVERSIFICATION OF R&D IN A CONGLOMERATE WORLD." Oxford Bulletin of Economics and Statistics 50, no. 3 (2009): 243–61. http://dx.doi.org/10.1111/j.1468-0084.1988.mp50003002.x.
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ВОРОПАНОВ, Н. С., and Д. А. СМИРНОВА. "AUTOMATIC CONTROL SPATIAL DIVERSIFICATION OF THE ENERGY COMPANY'S ACTIVITIES AS A WAY TO INCREASE ITS EFFICIENCY ON THE EXAMPLE OF PJSC INTER RAO." Экономика и предпринимательство, no. 6(155) (August 2, 2023): 1446–49. http://dx.doi.org/10.34925/eip.2023.155.6.271.
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Данная работа посвящена оценке процесса диверсификации энергетических компаний в Российской Федерации, в частности с точки зрения стратегии предприятия. Работа содержит описание методики оценки уровня диверсификации, связанной с процессом выхода на новые географические рынки, а также построение алгоритма оценки эффективности мероприятий, связанных с процессом конгломеративной диверсификации. This work is devoted to assessing the process of diversification of energy companies in the Russian Federation, in particular from the point of view of the enterprise strategy. The work contains a description of the methodology for assessing the level of diversification associated with the process of entering new geographical markets, as well as the construction of an algorithm for evaluating the effectiveness of measures related to the process of conglomerate diversification.
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Kitoto, Jacob Owenga. "Effect of Unrelated Diversification Strategy on Organizational Performance among Star-Rated Hotels in the Kenyan Coast." African Journal of Tourism and Hospitality Management 4, no. 1 (2025): 17–29. https://doi.org/10.37284/ajthm.4.1.2631.
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Despite its growth, potential contribution to the economy and being an integral part of tourism destinations, the performance of the hotel sector has remained susceptible to both domestic and global uncertainties. Most of the studies conducted in developed countries concentrate majorly on manufacturing firms. This creates a gap in developing countries. This study was guided by the following objective: To examine the effect of unrelated diversification strategies on organizational performance among star-rated hotels on the Kenyan coast. An embedded mixed method comprising a descriptive survey and explanatory research design was used. The study was conducted on the Kenyan coast. Stratified random sampling techniques were used to select the hotels, Purposive sampling was used to select Strategic managers and random sampling technique was adopted to select both middle and lower-level managers. Data was collected through a questionnaire and interview schedule. 383 questionnaires were distributed and 29 managers were interviewed. Descriptive statistics and simple linear regression were used to analyze data. Qualitative data was analyzed thematically. 354 questionnaires were dully filled representing a 92.7% return rate while 29 general managers interviewed represented 80.6%. The simple regression model result showed that R-squire = 0.558. This means that 55.8% of performance is explained by conglomerate and collaboration diversification strategies. The result indicated that conglomerate diversification strategies (p-value < 0.0001) and collaboration diversification strategies (p-value = 0.031) are significant predictors of the performance of star-rated hotels on the Kenyan Coast. The null hypothesis was tested and rejected. According to the findings, the study recommends that hotels wishing to increase or retain their financial position and market share and also achieve economy of scale even during business turbulence should employ an unrelated diversification strategy. This will ensure hotels' high performance and sustainability during business distress such as the COVID-19 pandemic or decline in product lifecycle
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Anjos, Fernando, and Cesare Fracassi. "Technological Specialization and the Decline of Diversified Firms." Journal of Financial and Quantitative Analysis 53, no. 4 (2018): 1581–614. http://dx.doi.org/10.1017/s0022109018000583.
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We document a strong decline in corporate-diversification activity since the late 1970s, and we develop a dynamic model that explains this pattern, both qualitatively and quantitatively. The key feature of the model is that synergies endogenously decline with technological specialization, leading to fewer diversified firms in equilibrium. The model further predicts that segments inside a conglomerate should become more related over time, which is consistent with the data. Finally, the calibrated model also matches other empirical magnitudes well: output growth rate, market-to-book ratios, diversification discount, frequency and returns of diversifying mergers, and frequency of refocusing activity.
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Park, Hong Y., Geon-Cheol Shin, and Sung Hahn Suh. "Advantages And Shortcomings Of Korean Chaebols." International Business & Economics Research Journal (IBER) 15, no. 3 (2016): 97–106. http://dx.doi.org/10.19030/iber.v15i3.9674.
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The prevalent form of business organizations in Korea is a chaebol. The chaebol is a diversified conglomerate. This paper addresses the following issues concerning Korean chaebols: 1) reasons for diversification, 2) advantages and shortcomings of chaebols, 3) issues facing Korean chaebols, and 4) chaebols’ managing the crisis and making reforms. We found that Korean chaebols managed to learn from the economic crisis and made successful reforms.
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Savitha, Basri, Subrato Banerjee, and Ankitha Shetty. "Product diversification versus technical efficiency of conglomerate life microinsurance companies: evidence from India." Geneva Papers on Risk and Insurance - Issues and Practice 44, no. 3 (2019): 527–47. http://dx.doi.org/10.1057/s41288-019-00128-8.
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MARTIYANOVA, Maryna, Nataliia KUPRINA, Nataliya BASIURKINA, and Kamila MOMOT. "STRATEGIES FOR DIVERSIFICATION OF ENTERPRISE ACTIVITIES: CLASSIFICATION, PRINCIPLES OF IMPLEMENTATION AND STAGES OF DEVELOPMENT." Herald of Khmelnytskyi National University. Economic sciences 320, no. 4 (2023): 440–45. http://dx.doi.org/10.31891/2307-5740-2023-320-4-66.
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The article is devoted to developing a classification of strategies for the diversification of enterprise activities, the principles of their implementation, and the key stages of development. It is substantiated that diversification strategies of enterprise activities are essential for ensuring sustainability, competitiveness, and development in a changing market environment. It is determined that by sectoral affiliation, mono-sectoral, multi-sectoral, and multi-sectoral unrelated diversification are distinguished. Attention is also focused on vertical, horizontal, concentric, and conglomerate diversification strategies. The essence, advantages, and disadvantages of each of them are defined. Varieties of vertical and horizontal diversification are considered, such as full integration, expansion of the range of products, and expansion by geographical location. The essence of related and unrelated diversification strategies and the possibility of their combination in cross-cutting and mixed strategies are disclosed. It is substantiated that the presented classification provides an opportunity for business owners and managers of enterprises to note and analyze various diversification strategies. It allows them to focus on those strategies that may be most effective in the context of a particular activity, especially in an environment of unstable functioning. The principles of the diversification strategy are clarified: consistency, flexibility, relevance, synergy, innovation, and distribution of risks. The main stages of developing a diversification strategy are presented, which include: analysis of the strengths and weaknesses of the business; determination of the goal, objectives, and expected results of diversification; search for possible areas of diversification; assessment of promising areas of diversification; analysis of the total investment portfolio; making a decision on the most optimal direction of diversification; monitoring the implementation of the diversification strategy.
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Koshy, Swapna. "The Premium Industries Group Dubai." Emerald Emerging Markets Case Studies 1, no. 1 (2011): 1–2. http://dx.doi.org/10.1108/20450621111110339.
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Subject area Corporate strategy, growth strategy, diversification, integration, and external environment. Study level/applicability First year undergraduate Business and Management. Case overview The Premium Industries Group, started in Dubai, in 1997 by entrepreneur extraordinaire George Martin, had grown exponentially in a decade into a conglomerate comprising 17 companies. The group had succeeded in capitalising the meteoric growth of Dubai. However, the change in the economic scenario prompted George to evaluate the company's past growth strategy and consider if it was appropriate for the future. Expected learning outcomes This case can be used to teach growth strategy, related and unrelated diversification, vertical and horizontal integration and impact of the external environment on corporate strategies. Supplementary materials A teaching note is available on request.
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МУХИН, И. А., and В. Я. ВИШНЕВЕР. "DIVERSIFICATION STRATEGY IN RUSSIAN COMMODITY MARKETS." Экономика и предпринимательство, no. 2(163) (May 9, 2024): 292–95. http://dx.doi.org/10.34925/eip.2024.163.2.050.
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В статье рассмотрены сущность диверсификации производства, ее цель и направления развития. Диверсификация бизнеса является стратегически значимым действием компании, направленным на сохранение и распространение влияния на занимаемых рынках путём расширения объёмов предоставляемой качественной продукции, способной удовлетворить потребности потенциального потребителя. Определены три основных критерия оценки диверсификации: привлекательность отрасли, затраты на вхождение компании на рынок, получение дополнительной выгоды от развития нового направления деятельности. На российских товарных рынках, как правило используются четыре основные стратегии диверсификации: вертикальная, горизонтальная, концентрическая, конгломератная. Грамотно подобранная стратегия диверсификации производства позволяет минимизировать риски и влияние негативных факторов. The article examines the essence of production diversification, its purpose and directions of development. Business diversification is a strategically significant action of the company aimed at maintaining and spreading influence in the markets it occupies by expanding the volume of quality products provided that can satisfy the needs of potential consumers. Three main criteria for assessing diversification have been identified: the attractiveness of the industry, the costs of a company entering the market, and obtaining additional benefits from the development of a new line of activity. In Russian commodity markets, as a rule, four main diversification strategies are used: vertical, horizontal, concentric, conglomerate. A well-chosen production diversification strategy allows you to minimize risks and the impact of negative factors.
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ENOBONG, Uwah Inemesit, Otu Otu EKPENYONG-EFFA, Morgan Morgan OBONG, Kola Musiliu HAMMED, and Uwah Kufre ISONG. "INNOVATION: A MODERATING FACTOR FOR THE EFFECTIVENESS OF DIVERSIFICATION STRATEGIES ON THE SUSTAINABILITY OF HOSPITALITY FIRMS IN NIGERIA." GeoJournal of Tourism and Geosites 42, no. 2 supplement (2022): 727–34. http://dx.doi.org/10.30892/gtg.422spl11-882.
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The study aims to examine the effect of innovation as a moderating factor for the effectiveness of diversification strategies on the sustainability of hospitality firms in Nigeria. The study applied a quantitative method involving a survey design. A questionnaire measurement instrument was constructed and deployed on a sample of 104 respondents from 3 four-star hotels in the study area. Confirmatory Factor Analysis (CFA) was used to validate the constructs in the measurement instrument. Multiple regression analysis was used to test the study hypotheses. The results showed that concentric and conglomerate diversification strategies have a significant positive effect on the sustainability of hospitality firms. Also, innovation has a significant positive moderating effect on the relationship between diversification strategies and the sustainability of hospitality firms. Therefore, the study concluded that hospitality firms, particularly hotels should consistently innovate and diversify their services and product to gain market share, customer patronage and improve organizational performance in the long run while also remaining sustainable.
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Fathurrahman, Donny, Muhammad Fikri Gissani, and Adhyasa Henry Nugraha. "CAKRA RADIO AS A DIVERSIFICATION FORM OF ARDAN GROUP." TOPLAMA 2, no. 1 (2024): 102–12. http://dx.doi.org/10.61397/tla.v2i1.224.
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Ardan Group utilizes a three-pronged diversification strategy: concentric, horizontal, and conglomerate. Notably, Cakra Radio and Ardan Hotel exemplify this approach. Cakra Radio, focusing on local culture, integrates itself into the lives of Bandung residents. Through diverse programming and high-quality content, it strives to remain the city's preferred radio station. Ardan Hotel, on the other hand, represents horizontal diversification. By entering the hospitality industry, Ardan Group expands into a related but distinct sector. The hotel caters to guests seeking an exclusive experience with top-notch facilities and services. Its success hinges not only on luxurious accommodations but also on efficient and innovative management practices. This demonstrates Ardan Group's ability to adapt and thrive in a dynamic business environment. In essence, Ardan Group's diversification strategy, exemplified by Cakra Radio and Ardan Hotel, fosters comprehensive growth. By strategically expanding into various sectors, the group optimizes its potential while managing risks. This approach has propelled them to success not only in radio but also in the hospitality industry.
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Goh, Jenson Chong-Leng, Manohar P. Sabnani, Gee Kwang Randolph Tan, and Siew Peng Tan. "Mastering the art of managing a conglomerate business empire in Myanmar." Emerald Emerging Markets Case Studies 5, no. 1 (2015): 1–14. http://dx.doi.org/10.1108/eemcs-05-2014-0145.
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Subject area Strategy. Study level/applicability Undergraduate final year or MBA. Case overview This teaching case describes the journey undertaken by Yoma Strategic Holdings (YSH) Ltd, a Singapore-listed company that operates predominately in Myanmar, to become a successful and highly profitable conglomerate business empire in Myanmar. The case provides a rich contextual description of how YSH leveraged upon its partnerships and capabilities, especially with its parent and sister companies, to pursue its conglomerate business model. To facilitate the discussion that this teaching case aims to generate among lecturers and students, we have provided a summary of the latest developments in Myanmar since the 2010 general election. This helps to give students an appreciation of the challenges involved in creating a successful business in Myanmar. Expected learning outcomes The learning outcomes that this teaching case hopes to achieve in students are as follows: Understand the concept of “economies of scope” in corporate strategy; identify and explain the various corporate strategies (i.e. diversification and vertical integration) that can be implemented to develop a conglomerate business model; recognize the organizational and managerial issues arising from implementing these corporate strategies and understand the circumstances that influence its success; and assess the relative advantages of managing a business in a conglomerate business model and advise a company on whether a particular activity should be undertaken internally or outsourced. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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SASGES, GERARD. "Scaling the Commanding Heights: The colonial conglomerates and the changing political economy of French Indochina." Modern Asian Studies 49, no. 5 (2015): 1485–525. http://dx.doi.org/10.1017/s0026749x14000389.
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AbstractBy the late 1800s the colonial state's increasing capacity to regulate, finance, and tax had begun to open up new opportunities for locally based French enterprises in Indochina. Chinese syndicates that had previously dominated the economy found themselves deprived of existing revenue streams and denied access to new ones. The result was an ‘Indochinese moment’ when a handful of colonial conglomerates used profits from state contracts, monopolies, and subsidies as a base for growth and diversification after 1900. Yet scaling the commanding heights of the economy was not easy, and was only achieved thanks to sustained and powerful state intervention. Moreover, one of the effects of the economic crisis after 1928 was the end of this Indochinese moment and a shift in initiative to a new partnership that linked an increasingly technocratic state with the financiers and experts of the Bank of Indochina. This article investigates this complex interaction of state power, technology, and capital flows with local Chinese, French, and indigenous Indochinese actors, using one particular conglomerate, the Fontaine group, as a case study to shed light on the mechanisms that linked an interventionist state to capitalist enterprise and ultimately to the remaking of the Indochinese economy.
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Oluwadare, Christopher T., Lawrence A. Oluwasanmi, and Osayemkemwen O. Ebenezer. "The Fulcrum of Dangotisation in the Nigeria Modern Society: Trajectory and Implications." International Journal of Research and Innovation in Social Science VIII, no. XVI (2025): 154–61. https://doi.org/10.47772/ijriss.2024.816sco0013.
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This paper explored the characters and social influence of Dangote Conglomerate in Nigeria’s contemporary society. The assumption is premised on the theoretical exposition of Henry Ford’s exploitation in the 19th-century innovation in manufacturing business which produced Fordism in modern society of USA and beyond and the McDonalds’ business sense which pioneered fast food conglomerates all over America, Europe, and Asia, this produced McDonaldism from the mid-20th century and central to the analysis of Postmodernism and globalisation. In Nigeria, the peculiarity of Aliko Dangote’s business sense started in the 1970s and increasingly expanded with much resilience is characterized by diversification, governmental support, focus on extractive raw materials, cascaded chains of retail outlets, non-partisanship relationship with political leadership, business brand not separated from ownership, rational aloofness from traditional inclinations, philanthropism, monopolistic inclination, strategic multilevel partnership, most popular brand name in Nigeria, focus on necessity products for household and industrial uses, and exposure to blizzards. Max Weber’s theory of rationalisation and Marxist critique of modernity were adapted to explain this Dangotisation. The quest for social order should be tied to the understanding and strategic response to the strengths, weaknesses, and prospects of Dangotisation in Nigeria’s social systems.
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Karkowska, Renata. "Model of Risk Diversification in the Banking Sector." Folia Oeconomica Stetinensia 19, no. 1 (2019): 31–42. http://dx.doi.org/10.2478/foli-2019-0003.
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Abstract Research background: Motivation for this study is the rapid development of conglomerate banking stimulated by the synergy between the traditional and parallel investment activity of banks before the 2007–2008 financial crisis. Existing studies do not answer the question about the positive influence of diversification on bank stability. They state that the combination of lending and non-interest income allows benefits to be derived from risk diversification. However, on the other hand they emphasise that non-interest and interest incomes are strongly correlated, which does not bring positive effects from diversification. Purpose: Scientific problem aimed to be solved is to verify how the diversification of activities in commercial banks into non-interest products (i.e. trading, securities-based investment activities, and derivatives) brings positive effects such as income stabilization and risk reduction. We examine the implications of banks’ risk adjusted ROA that manifest themselves as spreading and growing instability. Research methodology: We use a panel regression model, through a dataset that covers 777 international banks, in 91 selected countries of the world, spanning the period of 1996–2015. Results: We document that the diversification of a bank’s operations is varied and depends on a bank’s characteristics, including asset size. Novelty: The study contributes to the on-going discussion on the separation of retail and investment banks with a view to enhancing their profit stability.
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Jung, Jae, and Devon Howe. "Wanda’s ambitious expansion in the global movie industry." CASE Journal 13, no. 6 (2017): 729–49. http://dx.doi.org/10.1108/tcj-03-2017-0017.
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Synopsis The Wanda Case offers an overview of Wanda Group’s transition from a real estate firm in China to a global leader in the movie industry. Wanda Group, a Chinese conglomerate headquartered in Beijing, caused a major commotion in the US movie industry when it acquired AMC Entertainment in 2012. The AMC acquisition was the largest acquisition by a Chinese firm in the USA up to that time, costing $2.6 billion. Following that, a series of acquisitions had made Wanda Group the largest movie theater company, respectively, in the USA, Europe, and the World by the end of 2016. In order to fully comprehend the transition of the Wanda Group, the case begins by introducing the group’s origins and its original business model. It then discusses the challenges in the Chinese real estate market and factors that played a role in Wanda Group’s shift toward the movie industry. The authors further introduce the trends in movie theaters/production, recognized on a global scale in China and the USA, including key competitors in the industry. Last, the authors discuss Wanda Group’s global expansion efforts through major acquisitions in the USA and Europe, and the challenges that Wanda Group faced. Research methodology The case was written with publicly available information, such as newspaper articles, databases and corporate websites. The authors did not disguise any details. Relevant courses and levels This case can fulfill various learning goals in international business and strategy courses. First, this case offers detailed information about the diversification process of Wanda Group. It first diversified from real estate development into the movie cinema and production business in China (i.e. product diversification). More recently, Wanda Group diversified into the USA and Europe (i.e. geographical diversification). With the information provided in the case, students will be able to evaluate the costs and benefits of diversification strategies. Second, students can examine pros and cons of available entry modes for international expansions. Particularly, students will be able to evaluate the costs and benefits of acquisitions to Wanda Group’s international expansion. The authors also believe that this case can be used for introducing a relatively less-known emerging-market conglomerate, especially from China. Last, considering the rich information this case contains, the authors may use it as an exam case to evaluate students’ comprehensive knowledge gained from the course. Theoretical bases The case discusses corporate strategy, particularly diversification, the resource-based view, and institutional theory.
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Kovin’ko, Olena Mykolaivna. "AS PREREQUISITE PROGRAM MARKETING INTERNATIONAL BUSINESS DIVERSIFICATION OF AGRICULTURAL ENTERPRISES OF UKRAINE." SCIENTIFIC BULLETIN OF POLISSIA 1, no. 2(10) (2017): 185–94. http://dx.doi.org/10.25140/2410-9576-2017-1-2(10)185-194.
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Urgency of the research. At the current stage of the agricultural enterprises business activities in Ukraine are pressing questions about their international activities. The marketing program increases the efficiency of these enterprises in overseas markets. Target setting. Develop a marketing program is phased process research and analysis of the specific market situation. It is important for development purposes and marketing strategies. They can become a way for achieving the objectives of enterprises in the international diversification of business activities or potential threats, able to block these pathways. Actual scientific researches and issues analysis. In the academic and scientific literature review of issues received considerable attention from researchers such as Lyhmanyuk T. Roslyakov A, B and Kigel others. The research objective. The result of this work should be a document developed on the basis of clearly articulated goals of the system. This marketing program for "Vinahrodar" Zhmerynka district, Vinnitsa region abroad. The statement of basic materials. Once defined range of products, markets and growth opportunities in these markets, the chosen strategy of agrarian business enterprise, you must go to the development of the implementation plan international marketing. Such a plan should be a set of marketing activities of the potential of the agricultural enterprises and promotion of its products in foreign markets. In our view, an important step in developing a program of international marketing of the agricultural enterprise is a plan for implementing the agricultural potential on overseas markets. Below is the author of a plan designed marketing potential implementation of a diversified in-ternational conglomerate of "Vinahrodar" Zhmerynka district, Vinnitsa oblastion. Conclusions. Summing up the development of marketing programs business activities of agricultural enterprises in Ukraine in terms of international diversification (for example, an international diversified conglomerate of "Vinahrodar") believe that the producers of agricultural products in Ukraine need support state infrastructure development of foreign economic activity, reducing pressure and removing artificial bar'yeriv for uninterrupted business in the agricultural sector.
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Khalatur, Svetlana M., and Kateryna М. Zhylenko. "Strategies for Diversifying Tourism Services in the Context of Digital Society and Global Markets." Business Inform 9, no. 560 (2024): 274–80. https://doi.org/10.32983/2222-4459-2024-9-274-280.
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The aim of the article is to study the strategy of diversification of tourism services in the context of digital society and global markets, which is associated with new challenges and opportunities that require adaptation of the services offered. Diversification allows tour operators to reduce risks and increase profitability, focusing on different categories of customers and expanding the range of services offered. The article analyzes the current state of tourism services in the world and in Ukraine. The relevance of strategies for diversification of tourism services in the context of digital society and global markets is substantiated. The main strategies for diversification of tourism services in the digital environment are proposed, among which are: geographical diversification; product diversification; diversification of the client base; diversification through partnerships; innovations in the field of sustainable tourism. It is also determined that in the context of globalization, external and internal factors have a significant impact on the development of the tourism market. Diversification strategies involve expanding businesses by entering new markets, creating new products, or changing existing business models in order to reduce risk and increase profitability, allowing companies to respond more effectively to changing market conditions, avoid dependence on a single product or market, and ensure sustainable development. Studying the diversity of tourism activities, some scientists consider the possibility of using the following types of diversification strategies: vertical (concentric); horizontal; conglomerate. The benefits of diversification include: 1) reduced risk: companies can avoid dependence on a single product or market, which helps minimize the risks associated with market changes or fluctuations in demand; 2) increasing the sales market: entering new markets or creating new products allows you to attract new customers and increase sales; 3) efficient use of resources: diversification allows you to use existing resources and competencies to create new products or enter new markets. The identified advantages and disadvantages of diversification strategies in tourism allowed to assess their impact on the development of digital society, which allows the development of a more efficient, competitive tourism sector of the global market.
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Назаренко, І. Л., І. С. Лавринович, and В. М. Скрипнік. "INTERCONNECTION OF DIVERSIFICATION AND VALUE BASED MANAGEMENT IN SMALL WHOLESALE BUSINESS." Вісник економіки транспорту і промисловості, no. 84 (December 29, 2023): 72–85. http://dx.doi.org/10.18664/btie.84.301422.
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In the paper, we found out types of diversification suitable for small wholesale business in Ukraine in wartime. The most suitable types of diversification are: service, product, financial and geographic diversification. Also, horizontal, vertical, conglomerate and concentric types of diversification can be applied, taking into account their benefits and potential pitfalls defined in this paper.We also considered diversification as a value-creating strategy, outlined its main benefits and pitfalls. It offers several benefits, such as risk reduction by spreading investments across industries, thus reducing dependence on one market. It allows for synergies in related diversification through shared resources and expertise, enhancing efficiency and profitability. Additionally, diversification enables portfolio optimization, balancing performance across various sectors. However, it entails challenges like integration difficulties, potential overextension, and the risk of not realizing expected synergies. Effective diversification requires a clear strategic rationale, meticulous execution, and continuous monitoring, with willingness to divest from underperforming areas to sustain value creation.We suggested using Value Chain Analysis for choosing the most effective strategy of diversification for small wholesale business and developed Value Chain of a Small Wholesale Business (particularly, with heating equipment wholesale as a main type of activity).By understanding how each activity affects customer value, businesses can tailor their strategies to enhance customer satisfaction and loyalty. This might involve improving product quality, customer service, or any other activity directly impacting the customer experience.Value Chain Analysis is a strategic lens through which a business can view its activities and make informed decisions about where to focus its resources to maximize value creation.The next step of choosing the most effective value-creating strategy is building a Value Drivers Tree for each strategy considered and choosing the one creating the highest value of business.
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Dichenko, Anna. "PRODUCT DIVERSIFICATION STRATEGIES IN GLOBAL MARKET ENTRY." Economic scope, no. 201 (June 10, 2025): 57–60. https://doi.org/10.30838/ep.201.57-60.
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The article presents a comprehensive study of diversification marketing strategies employed by companies entering global markets. The relevance of the topic is driven by the increasing integration of world economies, intensifying competition, and the need to adapt business models to the specifics of international markets. Diversification is considered a strategic tool for ensuring stability, reducing risks, and enhancing the competitiveness of enterprises in a globalized environment. The study outlines the essence of diversification and its significance in building long-term competitive advantages and improving business adaptability. The main types of diversification are analyzed: horizontal (expanding the product range within the same industry), vertical (integration along the production and distribution chain), and conglomerate (entering new, unrelated industries). The article highlights the features of applying each type within the context of international marketing. Particular attention is paid to the practical aspects of implementing diversification strategies, such as adapting the product portfolio to the needs of culturally and economically diverse consumer groups, optimizing logistics, expanding distribution channels, forming multi-brand strategies, and developing new branding approaches. The importance of localized marketing communications, regional demand specificity, and cross-cultural sensitivity is emphasized. Based on the analysis, practical recommendations are proposed for choosing and implementing an effective diversification marketing strategy, depending on the characteristics of the target market, the level of competition, enterprise resources, and macroeconomic conditions. The findings can be useful for companies planning international expansion, as well as for marketing professionals involved in developing global growth strategies. Future research may explore the interplay between diversification and digital transformation, particularly in the context of emerging technologies and evolving consumer behaviors in different global regions.
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Teer-Tomaselli, Ruth, Keyan Tomaselli, and Mpumelelo Dludla. "Peripheral capital goes global: Naspers, globalisation and global media contraflow." Media, Culture & Society 41, no. 8 (2019): 1142–59. http://dx.doi.org/10.1177/0163443719842072.
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Naspers, a South African media conglomerate worth US$64 billion in 2016, operates across a range of media and information platforms in 120 countries, including many ‘emerging markets’. Naspers is an exemplar of media markets’ contraflow, conceptualised as the movement of information, media content, consumer goods and capital from the ‘developing world’ into more developed markets. This study examines (a) how Naspers has diversified its core media holdings (print and satellite) into digital information service providers and e-commerce; (b) how this was achieved both globally and domestically; and (c) how this diversification allowed Naspers to maintain its pre-eminent position in the South African media market. South African financial magazine articles, between 2010 and 2014, reporting on Naspers’ globalisation are thematically examined with regard to globalisation, diversification, ownership and control and collaboration. These themes frame a political economy analysis of how Naspers penetrated, expanded and solidified its e-commerce business operations nationally and globally.
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Yunianto, Ibnu. "Transformation Of The Media Economy Of The News Site Jawapos.Com In The Digital Era." representamen 10, no. 02 (2024): 113–26. https://doi.org/10.30996/representamen.v10i02.11129.
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The development of information technology and communication technology causes disruption reducing the media's ability to earn revenue, retain audiences, and producing quality content that threatens its survival. The effects of disruption were also felt by print-based media conglomerates such as Jawa Pos in the form of a decline in revenue from circulation and advertising turnover. Business diversification into a digital business with a vertical expansion and vertical merger model was carried out to build the Jawa Pos Multimedia Group subsidiary as a digital conglomerate. This research uses media ecology theory and Robert G. Picard's media economics perspective to explain how media companies maintain business continuity in the era of digitalization and explaining the results of the media economic transformation in the aspect of media sustainability. Based on the research results, the practice of continuum convergence, journalistic convergence, and cross selling and co-promotion strategies were able to change the company managing the JawaPos.com news site from a loss-making condition in 2017 to a profit in the 2021 financial year. This research also found that the survival of the media is not only determined by the quality of journalistic products, but also success in market penetration, financial management, and effective and efficient human capital management.
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Пахомовский, А. Ю. "CONCEPTUAL VIEW OF DIVERSIFICATION THEORY." Human Progress 9, no. 4 (2023): 22. http://dx.doi.org/10.34709/im.194.22.
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Современные вызовы внешней среды заставляют корпорации заново пересмотреть сложившиеся подходы к диверсификации бизнеса. Автором в данной статье проведен критический анализ трех основных теоретических подходов к диверсификации, которые являются базисом для менеджмента корпораций при формулировании стратегий диверсификации. Анализ ограничивается теориями продуктовой, а не географической диверсификации. Концепция рыночной силы аккумулирует в себе источники конгломератной силы, позволяющей диверсифицированной компании получить монопольные ренты. Концепция агентских отношений проводит связь между психологическими и экономическими мотивами менеджеров фирмы и характером диверсификации, подробно анализируя механизмы контроля за их зачастую оппортунистической деятельностью. Ресурсная концепция предполагает создание и развитие ключевых компетенций, позволяющей компании быстрее и эффективнее создавать прорывные продукты, которые позволят завоевать конкурентное преимущество на рынке. По каждой из концепций выявлены причинно-следственные связи, а также преимущества и недостатки. В результате анализа был сделан вывод, что ресурсная концепция имеет меньше недостатков, поэтому является основным подходом в науке последние годы, однако отдельные постулаты двух других концепций не менее актуальны в текущих условиях. Modern external environment challenges are forcing corporations to reconsider the established approaches to business diversification. The author in this article carried out a critical analysis of the three main theoretical approaches to diversification, which are the basis for corporate management in formulating diversification strategies. The analysis is limited to theories of product rather than geographic diversification. The market power concept accumulates in itself the sources of conglomerate power, which allows a diversified company to obtain monopoly rents. The agency relations concept draws a link between the firm managers’ psychological and economic motives and the nature of diversification, analyzing in detail the control mechanisms over their opportunistic (sometimes) activities. The resource concept involves the creation and development of key competencies that allow the company to quickly and efficiently create breakthrough products that will get them opportunity to gain a competitive advantage in the market. Causal relationships, as well as advantages and disadvantages, are identified for each concept. As a result of the analysis, it was concluded that the resource concept has fewer drawbacks, therefore it is the main approach in science in recent years, however, the individual postulates of the other two concepts are no less relevant in the current conditions.
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Oshilalu, Adeyemi Z., and Yolandie C. Baldie. "Critical strategic analysis forecast of the oil and gas business unit of General Electric Company: A conceptual review." Research Journal of Business and Economic Management 4, no. 1 (2021): 1–12. http://dx.doi.org/10.31248/rjbem2020.053.
Full textAbstract:
The General Electric Company (GE) is considerably assessed as one of the world’s most successful corporations in the 20th Century. GE is a huge multinational conglomerate with one of the most highly innovative business units/divisions in the world. Due to the vast majority of GE’s products and services, a critical strategic analysis forecast of one of the conglomerate’s eight business units – Oil and Gas is presented for a conceptual review. The paper details how these Strategic Business Units (SBUs) explored the efficiency and market focus of their business portfolio through diversification, innovation, and acquisition. Resource allocation and value chain analysis of the SBU was conducted to determine the certainty of the company’s competitive edge. The portfolio of the SBU; oilfield services, oilfield equipment, turbomachinery, and process & digital solutions were reviewed using the Boston consulting group (BCG) matrix while the Ansoff matrix was employed to analyze and predict the company for sustainable future growth and divestment. In 2017, the synergy between these SBU and Baker Hughes to deliver a full-stream integrated oilfield portfolio revealed a strong and enhanced competitive advantage of the SBU across the global oil and gas industry, however, the analysis of the company shows that the SBU still experiences underperformance in the stock market.
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Novita and Mulyani Mulyani. "ANALISIS KAUSALITAS STRATEGI DIVERSIFIKASI DAN KINERJA PERUSAHAAN." Jurnal Akuntansi 9, no. 2 (2020): 133–48. http://dx.doi.org/10.46806/ja.v9i2.765.
Full textAbstract:
Firm diversification is the level of development a firm undertakes both through the number of firms it manages and the level of its business segments (at least two business segments). Based on agency theory, companies with multi-segments are suspected of placing too large investment in their line of business with low investment opportunities. Meanwhile, according to market power theory, only conglomerate companies are able to diversify well. Previous research stated that even if conglomerate companies diversify, it may lead to firm performance’s loss. This study aims to determine the influence of diversification level, investment opportunities, firm size, leverage, and number of segments on the firm performance of manufacturing companies. The conclusion of this study shows that there is insufficient evidence that diversification level and number of segments has a negative influence on company performance. Also, there is insufficient evidence that leverage has a positive influence on company performance. Meanwhile, there is sufficient evidence that investment opportunities and firm size have a positive influence on firm performance.
 Keywords: Firm Performance, Diversification Level, Investment Opportunity, Company Size, Leverage, Number of Segments.
 
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Sumarmi, Sumarmi, Syamsul Bachri, Purwanto Purwanto, Siti Zubaidah, Rajendra Prasad Shrestha, and Adellia Wardatus Sholiha. "Assessing Bedul Mangrove Ecotourism Using Green and Fair Strategy Empowerment to Fulfill SDGs 2030 Agenda for Tourism." Environmental Research, Engineering and Management 78, no. 2 (2022): 73–87. http://dx.doi.org/10.5755/j01.erem.78.2.31006.
Full textAbstract:
Mangrove management is completely crucial for environmental sustainability. This study aimed (1) to examine the green and fair strategy in developing mangrove ecotourism in Bedul, Banyuwangi Regency, and (2) to examine the economic, social, and cultural improvement of the local community around the mangrove ecotourism area. The research method was qualitative descriptive using Internal Factor Analysis System (IFAS) and External Factor Analysis System (EFAS) matrix analysis from the SWOT approach. Data included primary and secondary data collected in 2020. Primary data were collected through observations and in-depth interviews with key informants and stakeholders around the study site. Secondary data came from literature reviews, documentation of the government institutions, and the local community. Based on IFAS and EFAS analysis, Bedul Mangrove Ecotourism belonged to Quadrant II with a diversification strategy. The diversification strategy in Quadrant II is located between concentric and conglomerate diversification that signifies a strong organization with strong threats. The analysis showed the need to diversify strategies or make modifications by integrating indicators for sustainable tourism in the mangrove ecotourism area of Bedul, Banyuwangi Regency, East Java. According to the identification results of tourism sustainability goals in accordance with the SDGs 2030 agenda, Mangrove Bedul Ecotourism requires the addition or modification of green and fair policies to address the limited aspect of economic development and the lack of guarantees for community welfare and stakeholders.
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KASUMOV, Teymur. "MODERN TYPES OF BUSINESS PROCESS DIVERSIFICATION STRATEGIES IN THE CONTEXT OF EUROPEAN INTEGRATION." Management 41, no. 1 (2025): 9–24. https://doi.org/10.30857/2415-3206.2025.1.1.
Full textAbstract:
THE AIM OF THE STUDY was to highlight the existing strategies for diversifying business processes in the context of Ukraine's European integration. RESEARCH METHODS. The following research methods were used in the article: general scientific methods, methods of studying economic phenomena and processes: method of comparison, method of synthesis, graph and tabular method, method of structuring and grouping. RESULTS. The article proves that topical issues of ensuring the effectiveness of diversification of business processes in the context of European integration are of fundamental importance, since the competitiveness of enterprises and their sustainability in foreign markets depend on the successful implementation of diversification strategies. This is especially important in the context of constant changes in the global market and the need to adapt to new business conditions determined by integration processes and the need to comply with international standards. The article systematises and summarises the main diversification strategies, such as vertical, horizontal, conglomerate and international. The essence of each strategy is described, their features are noted, and the main differences, advantages and risks are highlighted. The study also summarises the possible consequences and identifies the need to adapt to the new business environment in line with European standards. It is proved that vertical diversification involves expansion along the production or supply chain to optimise costs, while horizontal diversification involves expansion of activities at the same level of production or services to expand the range or improve quality. The process of entering the European market by opening branches in Poland by Nova Poshta LLC is studied, the adaptation of the business model by forming an international team and the strategy of cooperation with the local partner InPost is analysed. The financial costs of opening branches were estimated and the changes in the company's corporate identity in the context of European integration were recorded KEYWORDS: risks; expansion of activities; vertical and horizontal diversification; international markets; martial law; supply chains; innovative development.