Advantages And Disadvantages Of A Corporation Diversifying Essay

Advantages And Disadvantages Of A Corporation Diversifying Internationally - Essay Example Diversification may be used to refer to the variation between businesses within a company. This variation may be by products and/ or services. Diversification meaning varies across businesses, as what stands as diversification in one organization may not have significance in another. Thus, the definition of diversification is subjective. Nonetheless, business diversification may be in the dimension of cost leadership, production of commodity products, new product development, market leadership, strong brand names, high value added products, niche markets served, customers shared, advertisement emphasis, customer service emphasis and product design. Other dimensions may be emphasis on research and development, raw materials used, quality emphasis, distribution networks, company size. International diversification entails diversifying an investment portfolio across diverse geographic regions in order to lessen the overall peril and enhance returns on the portfolio. Corporations embrace international diversification by locating their operations in diverse nations and regions so as to reduce operational and business peril. There are three types of international diversification that is, related diversification, unrelated diversification and single product strategy. ... pany level tactic founded on a multibusiness model with the aim of increasing profitability through the use of common organizational capabilities to augment the performance of all the company’s business units. Firms that pursue this mode of diversification strategy are referred to as conglomerates, implying business organizations that function in numerous diverse industries. Advantages of international diversification Diversification and profit stability The assertions associating diversification on profit stability revolve around the portfolio concept, which holds that investing in diversified stock with non related profits may lower the precariousness of a corporation’s total gains. The idea of portfolio relates to product diversification, which may lower the variance of a company’s total profits. The reason is that the unpredictability of various profit schemes merged is nearly always less than the unpredictability of every profit stream independently, on cond ition that the profit streams are negatively related. Researches establish that product diversifiers actually enjoy higher profits than non diversifiers. The degree of risk reduction through unrelated diversification may exceed that which may be attained through related diversification. The reason is that unrelated diversification could lower industry specific systematic risk because it entails diversification across numerous industries. On the other hand, related diversification may not lower industry specific systematic risk happening within an industry. Industry specific systematic risks are the risks universal to all businesses in a certain industry (Kim, Hwang & Burgers, 1989, p 47). Rugman observed the same view, that geographical diversification through direct overseas investments evens out a

Public Law exam question Essay Example | Topics and Well Written Essays - 750 words

Public Law exam question - Essay Example Its is been examined and argued that existing constitution of UK is loose assemblage of defining conventions and institutions and concluded that it lacks the checks and balances needed to make it a democratic system of governance. By contrast, in the Westminster tradition, which originated in England, the uncodified constitution contains written sources but also unwritten constitutional conventions, precedents, royal prerogatives and custom collectively constituted the British constitutional law. In the days of the British Empire the Judicial Committee of the Privy Council acted as the constitutional court for many of the British colonies such as Canada and Australia, which had federal constitutions. I completely agree with the author that Conversely, the British constitution is, in practice, becoming more written and more legally codified, mainly because of the growing quantity and impact of EU laws and regulations, which take legal precedence over all other sources of the constitution; and also because of the large number of constitutional reforms introduced by statute since 1997 - such as devolution, reform of the Lords and the Human Rights Act. This trend will continue. Again, in practice rather than theory, the British constitution is gradually becoming more rigi... itten and more legally codified, mainly because of the growing quantity and impact of EU laws and regulations, which take legal precedence over all other sources of the constitution; and also because of the large number of constitutional reforms introduced by statute since 1997 - such as devolution, reform of the Lords and the Human Rights Act. This trend will continue. Again, in practice rather than theory, the British constitution is gradually becoming more rigid as the principle becomes increasingly accepted and expected that referenda should be held on issues of major constitutional change such as electoral reform, devolution and joining the euro. Although such referenda in the UK are invariably merely 'advisory' to maintain the semblance of parliamentary sovereignty, no government could, in reality, ignore a referendum result. Instead it can, of course, choose not to hold a referendum, as Labour has done since 1997 on the question of electoral reform for Westminster (despite a manifesto promise to the contrary). The piecemeal introduction of reforms since 1997 has brought a bigger change in the mindset of the people but there is still a lot of work to be done to formally have the codified constitution in place. Charter's document calls for a written constitution, one that would put the institutions of governance into a coherent framework. And this is what the people want. State of the Nation polls has consistently revealed over more than a decade that the overwhelming majority of people in Britain want a codified constitution. It is time to help bring this about. The unitary nature of the UK is also already challenged, however, by the supranational power of the EU over Parliament; and it is likely to come under more challenge from below as the Scottish, Welsh