To discuss examples of diversification, both effective and ineffective.

Assignment: Write a two paragraph or longer response to the following question – Can you describe a situation where a company made a decision to diversify? What type of diversification was it? Did it pass the three tests of building shareholder value?

Your short essay answer can focus on either an example of related or unrelated diversification described in Chapter 8 of the text (pages 157-162). Your task will be to find a company that has diversified and discuss whether the move was related or unrelated diversification. Also, did the diversification move pass the three tests of building shareholder value (page 155)? Also, how did the diversification turn out? Was it a net positive for the company, a negative, or is the jury still out on the outcome?

Then, read and post a reply to two of your classmates regarding the analysis of their company. Specific questions to address include: Do you concur with your classmates’ analysis of the company? Is there another category of diversification that might be a better fit for the company? Why? Do you think that the diversification of the company adds to shareholder value? Why or why not?

Rule: Only one post per company.Your post must be a unique company not discussed by any other post on this discussion board. Please discuss only one company in your post in order to give everyone a chance to focus on a single company in their example.

Rule: Post one (1) original thread and two (2) replies to other threads for a total of three (3) posts on the discussion board. Your original thread must be unique to you and must focus on a unique company that is not discussed by anyone else in the class.

Thread Example: In 2007, Nike acquired Umbro, a sportswear and soccer equipment company based in Manchester, England. Because the acquisition of Umbro was a sportswear company, this was a related diversification move for Nike. At the time of the acquisition, the European Sportswear Industry appeared attractive, particularly for Nike, which sought a toehold in Europe. The cost of entry, though, was high. The acquisition price was far in excess of Umbro’s stock price at the time of acquisition. Nike management argued that both firms would be better off post-acquisition.

In 2012, Nike announced that they would be selling Umbro to focus on their core businesses. Reports suggested that Nike has been unable to successfully integrate Umbro, the unit continued to operate at a loss, and the European market had become unfavorable for many competitors, not just Nike. Nike reportedly took a loss on the sale of the Umbro subsidiary.

You can leave a response, or trackback from your own site.


9 Responses to “To discuss examples of diversification, both effective and ineffective.”

  1. cvv dumps says:

    49779 34320Thank you for this. Thats all I can say. You most certainly have created this into something thats eye opening and essential. You clearly know so considerably about the topic, youve covered so many bases. Excellent stuff from this part with the internet. 817395

  2. 20933 209446Do you wear boxers or biefs? I wana bui em. 313053

  3. 171985 63220Intriguing post. Positive that Ill come back here. Great function. 220268

  4. 82040 688055A very informationrmative post and lots of truly honest and forthright comments produced! This surely got me thinking a good deal about this concern so cheers a good deal for dropping! 960664

  5. Fun88 says:

    957234 577460I like this internet web site very considerably, Its a really good post to read and get information . 394256

  6. 30250 523208Aw, i thought this was quite a good post. In concept I would like to devote writing such as this moreover – spending time and actual effort to produce a fantastic article but exactly what do I say I procrastinate alot by no means manage to get something done. 142944

  7. Jacki Kotrys says:

    Lolox Electric Classic Design and Professional Support.

  8. 229489 285469Wonderful beat ! I would like to apprentice whilst you amend your web internet site, how can i subscribe for a weblog website? The account helped me a applicable deal. I had been tiny bit acquainted of this your broadcast provided shiny transparent notion. 445042

Leave a Reply

Powered by WordPress | Designed by: buy backlinks | Thanks to webdesign berlin, House Plans and voucher codes