InterviewSolution
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What are different reason for diversification and acquisition? |
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Answer» There are a number of organizations that are currently making use of DIVERSIFICATION acquisition strategy. Some of the benefits of using diversification acquisition are listed here below:- • This strategy can prove HELPFUL in INCREASING the productivity of capital. The possibilities are much better when skilled knowledge is combined with industry knowledge. • Long term average business cost in the current market can also be reduced for investments that are closely related to each other in the market. • Critical mass can also be generated in any field of competence for resources that are important to outperform the market trend. • It can also help the organization to reduce the RICK factor involved to any product. • The cash flow can also be enrooted from a well performing company to a not so well performing company or unit. This will further ELIMINATE the chances of businesses to individually raise funds and capitals. |
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