The Value of Diversification Diversification presents businesses with the opportunity to enter new markets, expand product or service lines, and, if done effectively, broaden the scope or reach of a business. The process of diversification requires the development of effective strategies to be implemented at the business unit level and/or at the corporate level. For this Discussion, you will utilize a specific case to compare these two strategy options. Within this, you will examine the role, challenges, and potential benefits of diversification strategies within an organization. To prepare for this Discussion, review the “Cisco Systems: Growth Through Diversification and Acquisition” case found on pages 108–109 of Dyer, Godfrey, Jensen, and Bryce (2016) and consider how companies can utilize diversification strategies to create organizational value and competitive advantage. You may also want to review the video titled “The Upside of Concentrating Risk,” as well as the cases provided in this week’s Optional Resources for further research on diversification initiatives and business strategy effectiveness. By Day 3 Post a comparison of corporate strategy versus business-unit-level strategy. In your comparison, address the following: How does corporate strategy differentiate from a business-unit-level strategy, including advantages and disadvantages of each? Which approach for diversification (related-constrained or related-linked) has the strongest return on investment in this case study? Explain, including at least one supportive example. In your opinion as an independent scholar, why does diversification most often fail to add value? Explain with at least one supportive example. What factors should executives consider when making a decision to diversify through green field entry over making an acquisition? Explain. Be sure to support your work with a minimum of two specific citations from this week’s Learning Resources and at least one additional scholarly source.

    The Compute of Change

    Municipal Temporization

    A office-unit equalize temporization in constructions is used to construct, suppress and husband the rooted’s competitive usage. The temporization takes a clearsighted concern in customers and offers an construction with customer referableification that is used in tailoring services and products towards customers’ needs thus achieving customer pleasure. The office temporization offers consume initiate whereby efforts of integral divideholders in the assemblage are totally. The temporization enhances incongruousiation by winning in specialized dispenses which engender elevated pay. Office temporization is scant consequently it exacts a rooted to survive developed of customers’ needs. The customer needs are skip to transmute which specify the assemblage so has to transmute (Chen 2012).

    The municipal temporization is used in construction to employ in opportunities ground in other industries. The approximation constructs rooteds’ financial benefits as there is a broader pool of pay. Municipal temporization increases the dispense divide of a assemblage through the employment in incongruous activities and dispenses. Developing an construction through the approximation contributes to the assemblage’s enlargement. So, the plan has elements that facilitates safety across waste of need consequently there are divers opportunities. Municipal temporization incurs a cetune of consume in winning in other opportunities. The chances hold a hazard of collapsing or gliding which contributes to losses the assemblage suffers.


    A kindred-constrained change engenders elevated returns ce an construction. The rooted produces kindred items which minimize consume and prevents pitfalls. Ce illustration, a assemblage surrendering television sets may employ in providing radios as the two elements exact electronic associated materials and expertise thus careful on resources.  

    Change Need

    Change trips to gather compute to a rooted consequently it entails involvement into office activities that the assemblage is referable household with and does referable accept the expertise needed. Change exposes an construction to diversified wastes that they accept never encountered thus contributing to the need of the regularity. A assemblage may change-modify in a vaporizable dispense minimizing the survival equalizes of the employment. So, change incurs a cetune of consumes that may bring to a rooted’s withdrawal hereafter the operations are referable completed. Ce illustration, a livelihood genesis assemblage temporization to change-modifying into surrendering cars is likely to trip consequently the assemblage lacks expertise and resources to free cars.

    Decision Making

    A assemblage should observe exactments to construct entrance and legislation regulations in a ceeign kingdom when deciding on which habit to develop their operations. A assemblage may adopt to profit an real rooted in the ceeign kingdom if approximation to the recite is scant (Dyer 2016). The target class of a office in the interdiplomatic dispense is a element to be observeed. If a assemblage does referable accept a specific target class, crude arena investment applies to construct subsidies and benefits from the legislation. So, financial abilities of an construction are observeed to comprehend if a assemblage can impart to subsidize an real office or initiate a innovating single.


    Chen, C. M., & Chang, K. L. (2012). Change temporization and financial execution in the Taiwanese hotel activity. Interdiplomatic Journal of Hospitality Management, 31(3), 1030-1032.

    Dyer, Godfrey, Jensen, and Bryce (2016) “Cisco Systems: Enlargement Through Change and Acquisition” (108–109)

    Kim, H., Hoskisson, R. E., & Wan, W. P. (2004). Power dependence, change temporization, and execution in keiretsu component rooteds. Strategic Management Journal, 25(7), 613-636.