Company Diversification Essay Example | Topics and Well Written Essays - 500 words

Company Diversification - Essay Example   The business venture that the corporate managers decide on should be that can gain from the resources of the diversified company. The management can also invest in creating sustainable competitive strategies by developing chain relationships with other companies in the industry (Daft, et al, 2010). This will enable the company to enjoy from economies of chain relationships. Similarly, the company should also prioritize on the diversification chances available in the industry. One of the strategies that the organizations can take to diversify is through acquisition. This will help the company to enter the market quicker than other. It may decide to use internal startup or through a joint venture.Factors to consider for the diversification of the companyOne of the factors that the corporate managers should ask themselves is whether they understand the advantage competitive strength of cross-business strategy. This will help them to fathom how different strategic fits work in a comp any. Furthermore, it will help the company to do strength, weakness, opportunity and threat analysis of the business. The team manager should also ask themselves whether the organization is strong enough to take full part in the group venture. Similarly, the managers should also examine themselves whether they can afford to cope with the strategies that will thereafter be put in place. The management team also needs to prioritize diversification opportunities that are available in the industry (Daft, et al, 2010).