23. Explain the difference between related and unrelated diversification(conglom

Question

23. Explain the difference between related and unrelated diversification(conglomerates) by using relevant examples 24. What is strategic alliances? 25. Why do Firms enter Strategic Alliances? 26. What are the three mechanisms that alliances are governed?? Define and discuss how they differ? 27. Read chapter case, Goldman Sachs, and discuss how and why Goldman Sachs was unethical in the Abacus deal 28. What are the major attributes of two primary organizational structure, organic vs Mechanistic? 29. Define and discuss four building blocks of organizational structure (Specialization, Formalization, Centralization, and Hierarchy)

Explanation / Answer

23-Related diversification can be described as a type of diversification in which company extend their existing product lines or markets. Adding new product to the specific product line which is already been implemented by the company is a fine example of related diversification. All the products involved in the specific market segment are related to the pre existing product range by the company.
For an example if a company introduces a new toothpaste to their existing to pay strange it would be fine example of related diversification.

Unrelated diversification can be described as a product range which is not directly related to the pre existing product line from the company. This type of approach helps the company to enter new market as well as to offer new products.
Foreign example if an automobile company goes for manufacturing ball bearings would be the fine example of unrelated diversification of the companies implementing their strategy in a totally new market segment.

24-Strategic alliances can be defined as a strategic partnership which is usually and agreement between two or more than two parties. This type of approach is made to obtain objectives with independent availability of the organisations.

25-Companies form strategic alliances to obtain their objectives without creating separate identities for the organisation. This type of approach Health Organisation to maintain their individual identity in the specific Markets and improve the availability of options for providing services in the specific market segment.

26 - Three methods of alliance governenceare as follows

Joint venture

Joint ventures are the safest way to invest your money in different countries as well as International businesses. With the help of joint ventures one can easily invest their money with the purely experience company and can gain profit.

Non equity- non equity method of governance are flexible as well as they are very easy to start and end. The involve lack of trust and commitment as the weak side of the specific structure

Equity Alliance - stronger trust and commitment opportunity to utilise new technologies are part of the equity based alliances. They are relatively less flexible as well as lower than non equity alliances and have involvement of hefty investments.

P.S.- please use separate Threads to ask more than 4 questions in one go.

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