...that Dyer has been targeting. Dyer wants to grow his business enough to reach his strategic goal of building a sports complex for his business to occupy. Dyer needs to double his business in order to support this goal. In using S.W.O.T. analysis to evaluate NOCO’s current situation it is clear that NOCO has a number of things working for it already; customer retention is very high, awareness of NOCO in its’ current market is close to 100 percent and Dyer has access to enough trainer resources to continue his company’s growth. Some of the obstacles NOCO faces in working toward expansion are loss of customer base to high school sports programs after they reach 14 years old, a narrow selection of programs for current customers, lack of diversification and limited awareness of the company’s programs and philosophy in adjacent towns. Dyer could employ many operational strategies help reach his ultimate goal of a new sports complex. There are several opportunities available for NOCO to take advantage of with minimal threat or competition to worry about. Dyer has noticed that as the kids in his programs begin high school and start to participate in school sports, they tend to lose interest in the soccer programs he offers. Dyer might try product development by offering camps and training programs for the older students outside of their school and school sport schedules. Summer camps geared toward a general sport theme as opposed to just soccer might appeal to the older kids that are...
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...The way to fruitful long haul contributing is the conservation of capital. Warren Buffett, ostensibly the world's most excellent mogul, has one standard when contributing - never lose cash. This doesn't mean you ought to offer your venture property the minute they enter losing region, yet you ought to remain definitely mindful of your portfolio and the losses you're ready to persevere in an exertion to expand your riches. While it is difficult to stay away from danger completely when putting resources into the business sectors, these five strategies can help protect your portfolio. One of the foundations of Modern Portfolio Theory (MPT) is diversification. In a business downturn, MPT pupils accept a generally expanded portfolio will beat a thought one. Speculators make deeper and all the more extensively broadened portfolios by owning countless in more than one asset class, along these lines decreasing unsystematic danger. This is the hazard that accompanies putting resources into a specific organization instead of deliberate danger, which is the danger connected with putting resources into the businesses by and large. As per some money related specialists, stock portfolios that incorporate 12, 18 or even 30 stocks can take out most, if not all, unsystematic danger. Shockingly, methodical danger is constantly present and can't be differentiated away. On the other hand, by including non-associating asset classes, for example, securities, items, monetary standards...
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...d) How much will Eastbridge receive (in US$) if the share price of Cambridge is £7.50 and the spot rate is US$1.60 in one month time? e) What will happen if in one month time, share price of Cambridge drop to £5.00 and Eastbridge decided to hold on to the shares and sell at a later date when the share price is more favourable? Assume that the spot rate in one month time is US$1.68. Question 2 What types of risk are present in a portfolio? Which type of risk remains after the portfolio has been diversified? Question 3 How, according to portfolio theory is the risk of the portfolio measured exactly? Question 4 Discuss about the integration of market worldwide and its impact on international portfolio diversification. Question 5 Giri Lyer is a European analyst and strategist for Tristar Funds, a New York-based mutual fund company. Giri is currently evaluating the recent performance of shares in Pacific Wietz, a publicly traded specialty chemical company in Germany listed on the...
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...* Credit or Default Risk - Credit risk is the risk that a company or individual will be unable to pay the contractual interest or principal on its debt obligations. This type of risk is of particular concern to investors who hold bonds in their portfolios. Government bonds, especially those issued by the federal government, have the least amount of default risk and the lowest returns, while corporate bonds tend to have the highest amount of default risk but also higher interest rates. Bonds with a lower chance of default are considered to be investment grade, while bonds with higher chances are considered to be junk bonds. * Business Risk: This is the risk that issuers of an investment may run into financial difficulties and not be able to live up to market expectations. For example, a company’s profits may be hurt by a lawsuit, a change in management or some other event. * Interest Rate Risk: The risk caused by changes in the general level of interest rates in the marketplace. This type of risk is most apparent in the bond market because bonds are issued at specific interest rates. Generally, a rise in interest rates will cause a decline in market prices of existing bonds, while a decline in interest rates tends to cause bond prices to rise. For example, say you buy a 30-year bond today with a 6% annual yield. If interest rates rise, a new 30-year bond may be issued with an 8% annual yield. The price of your bond drops because investors aren’t willing to pay full value...
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...as well as the numerous cable and satellite channels such as NTL, BSkyB and Telewest. Recent advances in digital technology are currently driving widespread changes across the television industry. Starting from HD TV to DTT, there is a possibility of 3D TV in the future. In the future it is also possible that the viewer will be able to choose alternate endings to films and television programmes. Vodafone operates in telecommunications industry from broadband and mobile telephone where it is the leader. This can be classified as related diversification, where the development is within the similar industry. Base in the case, there is an opportunity for TV industries to grow. Product development is basically delivering modified or new product to existing market, where in this case Vodafone can use product development by integrating to television industry to achieve competitiveness which then again categorized as related diversification. [pic] Due to this strategy, level of penetration rate might be low. Vodafone might include an additional bundling package to customer. Promotions package are offer to customer which might include phone, broadband, and television. Another thing is there will be an increase of competition in UK television industry, also more choices and variety to customers. Most importantly, by entering the television industry, Vodafone can utilize fixed line and broadband to integrate television to complete a total communication concept. In short,...
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...(December 2010) Diversification is a corporate strategy to increase sales volume from new products and new markets. Diversification can be expanding into a new segment of an industry that the business is already in, or investing in a promising business outside of the scope of the existing business. Diversification is part of the four main growth strategies defined by Igor Ansoff's Product/Market matrix:[1] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities. Note: The notion of diversification depends on the subjective interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather than managers. Indeed, products tend to create or stimulate new markets; new markets promote product innovation. Product diversification involves addition of new products to existing products to existing products either being manufactured or being marketed. Expansion of the existing product line with related products is one such method adopted by many businesses. Adding tooth brushes to tooth paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of diversification. These are either...
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...Diversification A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. Diversification strives to smooth out/reduces unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others. Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated. Advantages and disadvantages of diversification Diversifying your investment portfolio can protect you from localized fall in the market, but it can also prevent you from making big money. The question of what breadth of diversification is appropriate is an ongoing conversation among financial professionals. Finding the right diversification level for yourself involves an analysis of your assets and your tolerance of risk. Advantages Risk reduction When your assets are widely diversified, your portfolio tends to perform in a similar way to the market as a whole. If you own stocks in 20 different areas and one of them takes a dive, it's unlikely that your portfolio will suffer terribly. Diversification is the best way to increase the stability of your investments and decrease your risk of losing money in the event that a single area decreases in value...
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...to be quoted Strategy for Export Diversification 2015-2020 Breaking into new markets with new products Dr. Zaidi Sattar Policy Research Institute of Bangladesh Prepared as a Background paper for the Seventh Five Year Plan 1 Table of Contents List of Tables .............................................................................................................................ii List of Figures ...........................................................................................................................ii List of Boxes .............................................................................................................................iii Acronyms .................................................................................................................................. iv I. INTRODUCTION ................................................................................................................ 1 II. CHALLENGE OF EXPORT DIVERSIFICATION ....................................................... 1 III. EXPORT PERFORMANCE AND PROGRESS OR LACK IN DIVERSIFICATION .................................................................................................... 3 Exploiting Non-traditional Markets for Exports ............................................................................... 14 IV. INTERNATIONAL EXPERIENCE AND LESSONS LEARNT ............................... 18 V. CONSTRAINTS TO EXPORT DIVERSIFICATION IN BANGLADESH ............... 21...
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...This article was downloaded by: [University of Glasgow] On: 06 August 2013, At: 08:28 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of Transnational Management Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/wtnm20 Diversification, Strategy, and Stability of Lebanese Banks: A Non-Parametric DEA Approach Rock-Antoine Mehanna & Youssef Yazbeck a b a b Sagesse University, Furn el Shebak, Lebanon Saint Joseph University, Beirut, Lebanon Published online: 14 Jun 2012. To cite this article: Rock-Antoine Mehanna & Youssef Yazbeck (2012) Diversification, Strategy, and Stability of Lebanese Banks: A Non-Parametric DEA Approach, Journal of Transnational Management, 17:2, 155-166, DOI: 10.1080/15475778.2012.676939 To link to this article: http://dx.doi.org/10.1080/15475778.2012.676939 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed...
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...ST 504 E Session 3. 1 Corporate Strategy Diversification Maryam Nasiriyar maryam.nasiriyar@esc-rennes.fr Key Strategic Choices Business level (CA) Cost Leadership (Volume) Differentiation Focused (Niche) Corporate level (CA) Expansion within the same industry versus Diversification Vertical Integration along the value chain or Outsourcing Internationalization Learning Objectives 1.Understand when and how business diversification can enhance shareholder value. 2.Gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. 3.Become aware of the merits and risks of corporate strategies keyed to unrelated diversification. 4.Gain command of the analytical tools for evaluating a firm’s diversification strategy. ’ When to Diversity A firm should consider diversifying when: • It can expand into businesses whose technologies and products complement its present business. • Its resources and capabilities can be used as valuable competitive assets in other businesses. • Costs can be reduced by cross-business sharing or transfer of resources and capabilities. • Transferring a strong brand name to the products of other businesses helps drive up sales and profits of those businesses. Testing Whether Diversification Will Add Value The Attractiveness Test: • Are the industry’s returns on investment as good or better than present business(es)? The Cost of Entry Test: • Is the...
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...#2 Diversify across asset class variants. Within each asset class, you can practice further diversification. For instance, equities have many representations in the mutual fund world. Variants or subclasses refer to more granular characteristics of the asset class. Here are some examples: Equities can vary according to: * the size of companies represented in a “basket” (e.g. large vs medium vs small cap stocks) * the way the stocks’ prices move as the stocks chart their growth (e.g. growth vs value stocks) * the geographical market in which the stock moves (e.g. domestic vs international) Bonds can vary according to: * their maturity dates (e.g. short term vs long term bonds) * their level of risk (e.g. junk bonds, anyone?) * who issues the bond (e.g. government vs corporate) * how they pay out Cash vehicles vary mostly according to rates of return and level of security offered, which are usually characteristics that are inversely proportional to each other. Generally, within the investment world, the higher the rate of return, the less stable the fund value is expected to be. Tip: You can find additional diversification down to the class variant level from mutual fund institutitions, Treasury Direct, or online stock brokers who can assist with giving you more information. Try Morningstar as well to help you with more details on this topic. Note though that most of the time, you don’t really need to seek this kind...
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...Priest J. Gordon FIN 6300 – Managerial Finance West Texas A&M University Spring 2013 Diversification 1. According to the article, what is a personal beta? (4 points) A personal beta is one’s professional sensitivity to the stock market. 2. List one job you think would create the highest personal betas (4 points) and one job that would create the lowest personal betas(4 points). Briefly explain your choices. (4 points) A commission stock broker or financial advisor would have an extremely high beta considering that their profession is 100% tied to the stock market. Conversely, a Civil Engineer working for the Corps of Engineers would have no professional relation to the stock market and therefore a very low beta. 3. According to the article, use no more than two sentences to explain how a person with high personal beta should invest her financial capital? (4 points) She should withdraw from the stock market and look at other low risk opportunities. Her high beta exposes her to too much risk already before she invests any capital. 4. How does the weather in the United States last year compare to normal? (4 points) According to the article, who benefits and who loses because of this weather? (4 points) This has been a very mild winter for the majority of the country. Only the West Coast & New England area are experiencing their normal temp ranges for this time of year. The cities and states who pay for snow removal and preparations definitely benefit from the warmer weather....
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...Diversification is one of the segments of the Ansoff matrix; it is a type of strategic direction whereby a company decides to take a new product into a new market. There are two types of diversification; related and unrelated. Related diversification is the process of developing further than their original products and markets whilst keeping within the organisation’s strengths. Unrelated diversification however, allows the organisation to step out of its capabilities comfort zone to develop new products for a completely new market. When a company decides to diversify its portfolios in a related field, it will either embark on a vertical or horizontal integration. Quite often an organisation will decide to take over a stage within the value network that is adjacent to their own. They thereby take over the responsibilities that input into the business. This is called backward integration. Others decide to take control of the next stage of their supply chain; this is referred to as forward integration. Furthermore, other organisations may decide to either develop activities that are complimentary to their existing products, or buy out competitors. Which is known as horizontal integration. This often creates economies of both scale and scope. Since a related diversification allows a corporation to use its competencies in developing a new product in a new market, it will be able to share many of it’s common resources, creating the advantage of economies of scope. These resources...
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...history (2), suggesting that rather than being an evolutionary dead end, polyploidy is a route to evolutionary success. A recent study (3) confirmed the ubiquity of polyploidy, with about 35% of vascular plant species being recent polyploids (“neopolyploids,” having formed since their genus arose), representing 15% of speciation events in flowering plants and 31% in ferns. It remains unknown, however, whether the abundance of polyploids is a consequence of higher diversification rates following polyploidy or of frequent polyploid formation. We estimated diversification rates of neopolyploids relative to their diploid congeners. We compiled a data set of angiosperm (n = 49) and seed-free vascular plant (SFVP, including ferns and lycophytes; n = 14) generic-level groups in which ploidy levels could be estimated from cytological and phylogenetic data (4). Over 500 ploidy shifts were inferred with a probabilistic model of chromosome number evolution that accounts for aneuploid and polyploid transitions but not diversification rate differences (5). This allowed us to label all descendants of a polyploidization event as neopolyploids, even when lacking chromosome data. heteroploid speciation, the difference in speciation rates between diploids and polyploids was no longer significant (P > 0.1). Nevertheless, the...
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...Diversification Strategies Diversification Strategies The question of whether a business should diversify or not sounds fairly simple. Businesses are always looking for ways to reduce risk in the marketplace as well as ways to improve performance and diversification is often a way to achieve those goals (“Business Diversification,” n.d.). Upon further examination though, the question is more complicated and could have a tremendous impact on whether a business succeeds or fails (Heller, R. 2006). This paper examines two companies that implemented diversification strategies with very different results: one successful and one that wasn’t. It will conclude with possible reasons why their outcomes were different and suggested actions the unsuccessful company could have taken that would have resulted in a successful outcome. Hallmark Cards, Inc. Hallmark Cards was first incorporated in 1923 and is now the world’s largest greeting card company. They distribute their cards and other products in more than 30 languages to more than 100 countries and in 2006 had $4.1 billion in sales. In the US alone, their products are sold in over 40,000 retail outlets, they have over 20,000 employees, and they continue to be privately held (“Hallmark Cards, Inc.,” 2007). Even in the early years of the company’s history, Hallmark saw a need to diversify and it continues that strategy today. Early diversification efforts were related to products like wrapping paper...
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