1.

What are different reason for diversification and acquisition?

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.



Discussion

No Comment Found

Related InterviewSolutions