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Author: Zhuang Qian
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
With the rapid changes and intense competition in global markets, a large number of firms have diversified their business into new product segments and international markets for competitive advantage. This has greatly impacted the operations manager's inventory decisions to meet the customer priorities aimed by the company-wide diversification strategies. Unfortunately, this potential linkage between corporate diversification and inventory performance has not been examined in prior research. Therefore, we conduct a large-scale empirical study to investigate the associations between product and international diversification strategies and inventory performance. We collect a sample of 73,412 observations across 7,284 U.S. publicly traded firms between 1989 and 2019 and develop our hypotheses based upon the classical inventory theories and corporate diversification strategies. We find strong evidence that related product diversification and international diversification are positively associated with total inventory, whereas unrelated product diversification is negatively associated with total inventory. Our research findings offer important insights into the top management's strategic planning for diversification as well as the operation manager's inventory control policies to achieve the strategic fit between corporate diversification and inventory management.
Author: Zhuang Qian
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
With the rapid changes and intense competition in global markets, a large number of firms have diversified their business into new product segments and international markets for competitive advantage. This has greatly impacted the operations manager's inventory decisions to meet the customer priorities aimed by the company-wide diversification strategies. Unfortunately, this potential linkage between corporate diversification and inventory performance has not been examined in prior research. Therefore, we conduct a large-scale empirical study to investigate the associations between product and international diversification strategies and inventory performance. We collect a sample of 73,412 observations across 7,284 U.S. publicly traded firms between 1989 and 2019 and develop our hypotheses based upon the classical inventory theories and corporate diversification strategies. We find strong evidence that related product diversification and international diversification are positively associated with total inventory, whereas unrelated product diversification is negatively associated with total inventory. Our research findings offer important insights into the top management's strategic planning for diversification as well as the operation manager's inventory control policies to achieve the strategic fit between corporate diversification and inventory management.
Author: Sajid Ali
Publisher:
ISBN:
Category :
Languages : en
Pages : 18
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Book Description
This study aimed to investigate the relationship between corporate diversification and firm performance in a developing country. Previous studies have found that the mixed results have been established between these two constructs in developed countries such as linear, u-shaped or inverted u-shaped relationship. To this end, a sample of 141 non-financial companies over the period of 2003 to 2013 listed on Pakistani stock market was used to analyze the impact of diversification strategy on the performance of firm. Corporate diversification is divided into two types including product and geographic diversification. The findings of the study demonstrated that an inverted u-shaped relationship existed as performance increased up to a certain level due to the related diversification strategy and then it fell down drastically. It showed that too much diversification creates agency problems and internal inefficiencies. It has implications for agency problems, weak corporate governance structures, and family relationships.
Author: Frithjof Pils
Publisher: Springer Science & Business Media
ISBN: 3834981818
Category : Business & Economics
Languages : en
Pages : 229
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Book Description
Frithjof Pils uses multiple statistical techniques to examine the true nature of the relationships between diversification strategies and accounting-based, market-based, and growth-based performance. The author shows implications for the interpretation of past research, the design of future research including the use of meta-analysis methodologies, as well as management practice.
Author: E. Ralph Biggadike
Publisher:
ISBN:
Category : Conglomerate corporations
Languages : en
Pages : 256
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Book Description
Author: Wesley Mendes-Da-Silva
Publisher:
ISBN:
Category :
Languages : en
Pages : 24
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Book Description
The strategy adopted by a company can be understood as the result of mechanisms and practices of corporate governance. In turn, the performance of a firm depends directly on the decisions made by its administrators. However, managers can incorporate their own personal interests in strategic decisions, creating a level of corporate diversification, according to the operation of the corporate government. Thus, the objective of this study is to investigate, empirically, if the structure of governance is different between focused and diversified firms and, furthermore, if differences in corporate governance are associated with some loss of value for the firm from the diversification. This study consists of a multiple cross section extending from 1997 to 2001. Data from 176 companies with open capital listed on the Satilde;o Paulo Stock Exchange (Bovespa) were used, representing 14 industry segments. The results of the multivariable analysis reveal that the size of the board of directors (InTAMC) and the participation of the executives in the profit (profit sharing) of the company (PART) are positively associated with the diversification of the firm (HPROD). Moreover, the companies with private national capital (CNTR) appeared more diversified than those with government capital; however it is important to recognize that these associations were not constant for the entire length of the study period.
Author: Wesley Mendes-Da-Silva
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
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Book Description
The performance of the companies dependent directly of the decisions taken for its administrators, thus, the assumed strategical position can be decisive for the levels of financial performance reached by the corporations. This article verify, the existence of associations between strategy of diversification of suppliers and the financial performance of Brazilian industries. The study is a cross section from 1999 up to 2001. They had been analyzed given referring to the 176 companies of opened capital, with actions negotiated in the Sao Paulo Stock Exchange, pertaining the 14 industrial segments. As changeable of performance (dependents) Tobin's Q index (q), is also used and the liquid growth of sales (CRESC). The results had evidenced that the companies with bigger levels of concentration of its purchases had shown superior performance to that they had opted to bigger degrees of diversification, and that the associations between strategy of diversification of suppliers and the considered measures of financial performance had followed a certain standard to the long one of the examined period.
Author: Michael E. Porter
Publisher: Simon and Schuster
ISBN: 1416595848
Category : Business & Economics
Languages : en
Pages : 592
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Book Description
Now beyond its eleventh printing and translated into twelve languages, Michael Porter’s The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter’s groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America. Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter’s “diamond,” a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of “clusters,” or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy. Even before publication of the book, Porter’s theory had guided national reassessments in New Zealand and elsewhere. His ideas and personal involvement have shaped strategy in countries as diverse as the Netherlands, Portugal, Taiwan, Costa Rica, and India, and regions such as Massachusetts, California, and the Basque country. Hundreds of cluster initiatives have flourished throughout the world. In an era of intensifying global competition, this pathbreaking book on the new wealth of nations has become the standard by which all future work must be measured.
Author: Averen Deonanan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Corporate strategy forms the foundation when considering the strategic alternatives available to an organisation. Corporate diversification and specialisation are two of the more popular configurations often proposed by corporate strategy theory in order to grow and sustain financial performance. The issue of whether or not diversification leads to financial performance has been debated since the early 1950s. Ample research has been conducted from an international perspective. However, the findings have been inconclusive/mixed/inconsistent and there remains a lack of consensus regarding the diversification-performance relationship. This study attempts to provide clarity on the matter by using a quantitative method to assess the financial performance of companies listed on the industrial sector of the Johannesburg Securities Exchange (JSE) for the period 2003 to 2010. Thirty-nine companies met the criteria for inclusion in the sample and were classified as either focused, moderately or highly diversified. Three financial measures were compared for the different categories, namely return on average equity, return on average assets and market return. Two of the three hypotheses are not statistically significant and the differences in the average (mean) performance measures are due to sampling error. One of the performance measures, return on assets, indicates that the difference in the ii average (mean) performance is statistically significant. The pairwise comparisons revealed significant differences between highly and moderately diversified companies as well as between moderately diversified and focused companies. The mean difference between focused and highly diversified companies was not statistically significant. In this regard, moderately diversified companies performed better than highly diversified and focused companies.
Author: Matthias Knecht
Publisher: Springer Science & Business Media
ISBN: 3658026774
Category : Business & Economics
Languages : en
Pages : 365
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Book Description
The decision to diversify lies at the core of corporate strategy and is one of the most important decisions for top management. Matthias Knecht introduces a new perspective on corporate diversification that extends the academic discussion and reveals substantial new insights with regards to one of the most pressing questions in strategic management: what makes a diversification strategy successful? The author introduces the dynamism of industries as the dominant force in the firm’s environment that influences the organization on all levels. Due to strategic, organizational, and managerial similarities of businesses competing in similar dynamic environments, synergistic benefits and superior economic performance can be realized through the combination of dynamic-related businesses in the corporate portfolio. This study provides a quantitative, multidimensional operationalization of industry dynamism and an in-depth assessment of the dynamism of a wide range of industries. At the core of the study lies the investigation of the performance impact of dynamic-related diversification strategies. The results provide new insights into successful portfolio construction strategies in the face of today’s dynamic environments.
Author: Kai Hanitsch
Publisher: GRIN Verlag
ISBN: 3640572513
Category : Business & Economics
Languages : de
Pages : 109
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Book Description
Diplomarbeit aus dem Jahr 2008 im Fachbereich BWL - Unternehmensführung, Management, Organisation, Note: 1,7, Handelshochschule Leipzig gGmbH, Sprache: Deutsch, Abstract: On corporate level main strategic decisions involve the question which businesses are to be pursued and which to be neglected, i.e. how the portfolio of businesses is designed. The ultimate goal is a value adding business portfolio. This added value arises from synergies among the businesses and the role of the corporate center. In the case of success this would lead to a conglomerate premium in terms of company value. Corporate managers are generally very free in deciding what businesses they want to add to their portfolio and which to divest. This raises two questions: one regarding the type of businesses in a portfolio and the other regarding the optimal size of a portfolio. The term diversification deals with both questions: it describes how broad and how diverse a company‟s business portfolio is. On the one hand it can be very narrow or focused in a barely diversified company, on the other it can be very broad in a highly diversified company. Three forms of diversification strategies are commonly distinguished: focused, relational and conglomerate diversification. Many researchers in the field of strategic management have dealt with the question of diversification and the pros and cons involved. Yet there is no clear hint on superior performance of certaint diversification strategies. Rather success stories for many forms can be told. Further findings indicate: not the degree of diversification is relevant for success but the relatedness among strategic business units. Portfolios of somehow related SBUs perform better than those completely unrelated. Success is explained by the ability to transfer core competencies ("resources") among the business units of a company. Yet relatedness is a manifold concept. Two main types have to be distinguished: relatedness on the level of products and pr
