Disadvantages of diversified management

Question 1: What are the advantages and disadvantages of diversification? 10 (2) Advantages and disadvantages of diversification

1. Advantages of diversification.

(1) Diverse risks (2) Resource utilization advantages (3) Pursuing profit advantages.

2. Disadvantages of diversification.

(1) loss of economies of scale. 2. Excessive pursuit of diversification is prone to decision-making mistakes. 3. The implementation of diversification strategy complicates management; 4. The increase of operation and management expenses. Financial problems

This is especially obvious when enterprises implement unrelated diversification strategies. Irrelevant diversification is mostly achieved through mergers and acquisitions, which makes business owners and senior managers enter a new field. As the saying goes, "Interlacing is like a mountain", because they are not familiar with the industry where the target of the merger is located, in this case, it is difficult for them to make wise decisions. The wrong decision will not only make it difficult to establish more pillar industries, but also add a lot of burden to the original pillar industries. A recent study abroad shows that the success rate of mergers in other industries, especially in unrelated industries, is very low compared with mergers in the same industry.

Question 2: Advantages and Disadvantages of Specialization and Diversification Strategies in Operation (1) Advantages and Disadvantages of Specialized Operation

1. Advantages of specialized operation.

(1) The realization of economies of scale. The core requirement of professional management is to concentrate the resource advantages of enterprises in a certain industry or product field, which is helpful to reduce costs, achieve economies of scale and meet customer needs.

(2) Core competitive advantage. Core competitiveness is the foundation of enterprise's survival, and any enterprise must have certain core competitiveness if it wants to grow and develop. Therefore, the formation, enhancement and sustainable development of core competitiveness is the goal that every enterprise is striving for. Specialized enterprises concentrate limited resources, specialize in a little, innovate constantly, and always walk in the forefront of their fields, raising the entry threshold in this field and effectively preventing competitors from entering. For example, Intel constantly updates Pentium series products, thus realizing the monopoly of CPU market; Microsoft, on the other hand, has achieved a monopoly on the operating system market through the continuous development and update of the Windows platform.

(3) Advantages in the target towel field. Specialized management is a business strategy with less risk in the target market. Although the demand for a specific product in a single market is limited, enterprises are familiar with the industry, have mature resources and have formed core competitiveness, which will ensure stable economies of scale and reduce risks. In addition, enterprises can promote the consumption in towel field and expand the survival and development space of enterprises through technological innovation of products in this industry.

2. Disadvantages of professional management. (1) is weak in risk resistance. Specialized enterprises produce a single type of products, and resources are too concentrated in a certain industry. Therefore, it is easy to form a high dependence on an industrial market. Once the industry is in turmoil or the competitiveness of its own products is weakened, enterprises will face huge business risks.

(2) the bottleneck of market capacity and technology. If an enterprise only develops a single industry, it will inevitably limit its development space and cause its surplus resources to be idle. In addition, because enterprises only research and develop specific products, and technological innovation is a high-investment and high-risk project, enterprises can easily fall into the double dilemma of capital and operation because of the failure of a development project.

(B) the advantages and disadvantages of diversification

1. Advantages of diversification.

(1) spread the risk. With the changes of the times and the progress of science and technology, industrial upgrading and the replacement of old and new products are getting faster and faster, and any industry and product will move from prosperity to recession. Diversification can enrich the product line of an enterprise, combine products with different life cycles and sell them together, so as to avoid the business risks brought by the obsolescence of a single product or the emergence of substitutes.

(2) Advantages of resource utilization. Diversified enterprises can produce internalization effect and synergy effect through diversified investment. Enterprises can integrate their research ability, production ability, business ability and reputation more widely, make effective use of resources, realize the sharing and complementarity of resources, maximize market development and improve competitiveness.

(3) Pursuing profit advantage. The purpose of enterprise development is to pursue profit maximization, if its business scope is limited.

Limited to a certain industry, then its profits are limited to that industry; Accordingly, if an enterprise can enter multiple industries, the profits will naturally come from multiple industries, not to mention the newly entered industries are generally profitable industries. Even if one industry is depressed, enterprises can still profit from other industries. 2. Disadvantages of diversification.

(1) loss of economies of scale. To some extent, diversification is at the expense of economies of scale in exchange for the reduction of operational risks. For those industries without obvious economies of scale (low technology and capital content), such as simple processing industry, this business strategy is worthwhile. For other industries with obvious economies of scale, it is different. The benefits of risk reduction are not enough to make up for the losses of economies of scale, mainly in some capital and technology-intensive industries. With the development of industry, competition is more and more concentrated on technology and capital, and diversified management makes enterprises at a disadvantage in the competition between technology and capital. Some scholars believe that this is the biggest drawback of diversification. For example, when several well-known domestic enterprises go public, their main businesses are very prominent. For example, Haier's brand products are refrigerators, Chunlan's air conditioners and Changhong's color TVs, which were all diversified later. In fact, these three companies don't invest in key technologies ... >>

Question 3: What are the disadvantages of economic diversification? How does Guangxi Beihai Chamber of Commerce operate? Does the boss make a lot of money?

How does Guangxi Beihai Chamber of Commerce operate? Does the boss make a lot of money?

The model is really good, but someone gave it to you.

Say, you can only serve as a reference, you can't.

Be able to participate blindly

According to objective things

Calm analysis combined with personal strength

consider

Guangxi Nanning business chamber of commerce

Guangxi Nanning business chamber of commerce

The chamber of commerce has been running for more than a year, and it once shed tears.

After four hundred nights of ups and downs, I suddenly looked back on the vicissitudes of life.

[Hero] Regardless of the source, [Meeting] equals fate.

[analysis] industry, [concept] determines a lifetime.

It's a good model, which can be inspected or made.

But not everyone is suitable for it.

I've been engaged for over two years.

I know many people.

But few people succeed, Jun Fu.

Please think twice before you act.

I summed up a few points:

1: Dare to cheat your family and friends, so that your face is not red and your heart is not beating.

2. There are 6.5438+0.5 million funds in hand. You can borrow money or sell a house!

There are no fewer than 50 friends in the society who can meet your first condition.

(At least three of them meet these conditions)

4. The pin head that can withstand pressure is called Chuan.

5. Willing to give up career and family and endure the hardships of leaving home.

Without any of the above, you are not suitable for this industry.

The whole process: 13-4-666-2545-Jun Fu

Question 4: What are the advantages and disadvantages of the strategy of specialization and diversification in operation? Generally speaking, diversification can help enterprises resist risks and resolve threats, but like anything else, it also has advantages and disadvantages. If adopted properly, it can improve the competitive advantage of enterprises; Improper adoption will damage the rational allocation of enterprise resources, thus affecting the competitive advantage of enterprises. The risks that diversification strategy may bring to enterprises include the following aspects:

(1) System risk. Diversification of enterprises is bound to face a variety of products and markets. These products may be different in production technology, technology development and marketing means, and these markets may also have obvious differences in development, development, penetration and entry. The management, technology, marketing and production personnel of an enterprise must be familiar with new fields of work and new business knowledge. In addition, due to the diversification of enterprises, the scale has gradually expanded and the number of institutions has gradually increased. The original mechanism of division of labor, cooperation, responsibility and interest balance within the enterprise may be broken, the difficulty of management and coordination will be greatly increased, and it will face greater challenges in redistributing resources and ensuring the competitive advantage of the enterprise. When enterprises enter new fields, they may make mistakes in decision-making and realize the risk of failure too early, leading to the failure of new business projects.

(2) Decentralization of assets. Under certain conditions, all the resources of an enterprise are certain and limited in a certain period of time. If the production and business units in an enterprise are too scattered, it will easily lose the competitive advantage of the original leading products and main business, and eventually lead to the loss of market and advantage in the competition of the original leading products or main business.

(3) Cost risk, that is, cost risk. Reducing business risks through diversification strategy needs to pay a certain price. For unrelated diversified or cross-industry business development models, people cannot exaggerate that "it is safest to put eggs in different baskets". Because, from a deeper level, the basket for putting eggs is also bought with money and has a cost. If the cost of making or buying baskets is considered, many enterprises may still choose to put eggs in one basket. Therefore, enterprises should make a comprehensive comparison when adopting diversification strategy.

Although "professional" management does sometimes face risks, it is concentrated in specific fields, with outstanding advantages, easy to reach a higher technical level, better meet the requirements of customers, and accurately grasp the changes in customer needs. At the same time, the advantages of "diversified" management cannot be absolute. From the practice of marketing at home and abroad, in the fierce market competition, nonstandard and blind "diversified" management often cannot resist market risks.

Question 5: I don't know the advantages and disadvantages and specific scope of application of enterprise diversification strategy, because I just found it for you from other places last time. Please have a look at the things below. If you feel useless, just look at other people's opinions:

One. Compared with unrelated diversification, related diversification strategy has the following advantages:

1. Know-how, production capacity or technology can be transferred from one business to another;

2. Related activities of different business operations can be combined to reduce costs;

3. You can borrow the reputation of the company brand in new business;

4. Implement relevant value chain activities in a collaborative way, thus creating valuable competitiveness.

Two. Diversification faces five major risks.

1. Risks from the original business. Enterprise resources are always limited, and diversified technical personnel often mean that the original industry will be weakened. This weakening is not only manifested in funds, but also in the distraction of management, and the consequences it brings are often serious. But the original industry is the foundation of diversification, and the new industry needs the support of the original industry in the early stage. If the original industry is weakened rapidly, the diversification of the company will face a crisis.

2. Overall market risk. A popular saying in support of diversification is that diversification can solve business risks by "putting eggs in different baskets"-the so-called "the east is not bright and the west is bright". However, the extensive interdependence in the market economy determines that diversified industries still face the same risks. In other words, the "eggs" are still in a basket, but the basket is a little bigger. Under the impact of macro-power, the diversification of resources increases the risk. A product export company can expand its business scale through diversification. However, in the face of the impact of the financial crisis, it is difficult for the company to compete with the toughest competitors in various business operations, and it will eventually be broken one by one.

3. Industry entry risk. Industry entry is not a simple "buy" process. After entering a new industry, enterprises must continuously inject follow-up resources to learn this industry, train their own employees and shape their own brands. On the other hand, the competitive situation of the industry is constantly changing, and the strategies of competitors are unknown, so enterprises must constantly adjust their business strategies. Therefore, entering an industry is a long-term and dynamic process, and it is difficult to measure the entry risk of the industry with the usual static indicators such as investment.

4. Industry exit risk. Enterprises seldom consider the issue of withdrawal before diversified investment. However, if the enterprise is deeply involved in a wrong investment project but can't get away with it, it is likely to lead to the complete demise of the enterprise. Well-designed exit channels can effectively reduce the risk of diversification. Motorola is optimistic about the satellite communication business and started the Iridium project. When Iridium eventually fell into billions of dollars in debt, Motorola only assumed limited responsibilities and losses, because it registered the Iridium project as an independent entity from the beginning.

5. Internal operation of the whole set of risks. The newly invested industries will have a comprehensive impact on the operation of enterprises and their existing industries through capital flow, logistics, decision-making flow and personnel flow. Different industries have different business processes and different market models, so there are different requirements for the management mechanism of enterprises. As a whole, enterprises must integrate the requirements of different industries for their management mechanism in some form. The conflict between the multiple objectives of diversification and the limited resources of enterprises makes the integration of this management mechanism more difficult, and makes the strategic objectives of diversification of enterprises eventually tend to compromise to internal conflicts. The diversified operation of Pepsi-Cola "Ten Coke" is facing the conflict between the two industries in terms of capital and human resources, and finally two companies have to be established to operate independently. When enterprises diversify their operations through mergers and acquisitions, they will also face a risk, that is, the risk of whether different corporate cultures can be successfully integrated. The conflict of enterprise culture is often fatal to enterprise management.

Question 6: What are the advantages and disadvantages of diversification and specialization? Diversification is conducive to the horizontal development of enterprises, can improve the ability of enterprises to resist the attack of unfavorable factors in the market, and is conducive to the long-term development of enterprises;

Specialization is to seek development on a single project, which can save development costs. But this reduces the ability of enterprises to resist attack in the market economy. This method can only play its greatest role when the enterprise is just starting.

Question 7: Advantages and Disadvantages of Labor Diversification Creating Global Labor Wealth Forum: Diversity and Unity

On May 6, 2005, Fortune Global Forum was held in Beijing. Speakers at the forum of "Creating Global Workforce" included Ms. Diana Farrell, Dean of McKinsey Global Institute, John B. Menzer, President and CEO of Wal-Mart International Department, Rushmi Narayanan, President and CEO of Cognizan Technology Solutions, Ballard, CEO of Deloitte, Charles Prince, CEO of Citigroup, and David kirkpatrick, Senior Editor of Fortune Magazine.

Employee management is the most complicated problem faced by all enterprises and companies. Brad, CEO of Deloitte, is very proud of their employee training program in China, and points out that "as a service enterprise, we must treat our employees well, which is very important from the perspective of law and cooperation."

Citigroup is a global company developed in the process of mergers and acquisitions for many years, so the management of employees is more complicated. Charles Prince, CEO, emphasized the unity of employees and their similarities. He called for "training employees throughout the organization and strengthening internal communication. Establish a unified internal performance evaluation plan to strengthen our control. " At the same time, he also emphasizes respecting the background culture of each company and looking for similarity and unity on the basis of diversity.

As a global supply chain, Wal-Mart hopes to complete localization and develop into a local company. John -B- Menzer, President and CEO of the International Department, hopes that the employees recruited by Wal-Mart can communicate in English through the IP system and establish enterprises that are familiar with each other.

Diana Farrell, Dean of McKinsey Global Institute, has done a lot of research on global labor issues. She suggested that enterprises should consider whether they are suitable for their own companies and the proportion they need when recruiting overseas. In addition, when the company expands overseas, it needs to "choose a more suitable city according to the company's business" and also consider the salary factor.

Cognizan Technology Solutions Co., Ltd. was originally a local company developed in India, and later it has 7,500 institutions around the world, with board members from all over the world. Rushmi Narayanan, president and CEO of the company, believes that the success of an enterprise must first find the most suitable person; The second is the closest to the customer, which is the most important, because it makes the relationship more harmonious; Thirdly, it is a unified culture. These three points also laid the foundation for success.

Regarding the global management network, narayanan said, "It is very important to know the local area. We hope to find local management talents and let them go global. " (Xin Lian)

Question 8: What are the advantages and disadvantages of diversification strategy? The so-called "vertical integration" management model is actually a replica of "big and complete" and "small and complete" enterprises. Enterprises adopting this management mode regard product design, planning, finance, accounting, production, personnel, management and equipment maintenance as essential business work. Many managers often spend too much time, energy and resources on auxiliary management. As a result, the auxiliary management work has not been grasped, and the key business can not play its core role, which not only makes the enterprise lose its competitive characteristics but also increases the product cost of the enterprise.

. "Horizontal integration" is to use the external resources of the enterprise to meet the market demand quickly, and this enterprise only focuses on the core things: product direction and market. As for production, we only focus on the manufacture of key components, and even entrust all of them to other enterprises for processing. The disadvantage is the high transaction cost.

Question 9: Is diversified development easy to succeed or single development easy to succeed? There are many successful examples of why/why, such as Coca-Cola, Toyota, McDonald's and so on. There are relatively few successful cases of diversification. Reprint the following information for your reference.

Diversification, also known as diversification or diversification, refers to the strategy of an enterprise to run a number of different businesses simultaneously in a number of related or unrelated industrial fields. In recent years, enterprise diversification has been a research topic in theoretical and business circles. Some people say that diversification strategy is good, while others say that diversification strategy has many disadvantages. In fact, diversification is a "double-edged sword", which can not only bring huge profits to enterprises, but also become the grave of enterprises. The key to the success or failure of enterprises in applying this strategy lies in whether the external environment and internal conditions of enterprises meet the requirements of diversified operation and whether the timing of implementation is commercial. If the two are consistent, you can succeed, otherwise, you will fail. Therefore, understanding the advantages and disadvantages of diversification strategy and choosing the opportunity to implement diversification strategy (including the conditions for implementing diversification strategy) are the key to avoid disadvantages.

Diversification and centralization are controversial topics, and their respective advantages and disadvantages have also been widely discussed. However, there are both losers and winners in the diversified or centralized operation of actual enterprises. I think diversification and unitary management are both enterprise strategies chosen by enterprises, and we can't simply say that diversification is good or unitary management is good. Only by combining the nature of the enterprise with the actual business background can we evaluate whether its strategy is feasible. The advantages and disadvantages of centralization and diversification in a general sense are analyzed as follows.

First, the advantages and disadvantages of single unification

Advantages of single centralization: First, focusing limited resources and energy on a certain major is conducive to doing fine work in this major. This is equivalent to competing with others with what you are best at, and the probability of success is greater. Second, it is conducive to innovation in areas where you are good at it. Just like Nokia, it specializes in the mobile phone market, constantly improving its quality, innovation and competitiveness, and making itself one of the top 500 in the world. Third, it is conducive to improving management level. Due to long-term centralized management, managers can be familiar with what management methods need to be adopted and how to make professional decisions.

Disadvantages of centralization: First, it is relatively risky to put funds in a certain professional field. Especially when the industry is in recession or substitute products or services appear, its survival will become a big problem. Second, it is easy to miss better investment opportunities. If an enterprise is too single, it will confine itself to one field, and if it does not pay attention to the emergence of new market opportunities, it will miss good investment opportunities and waste them in vain.

Second, the advantages and disadvantages of diversification

The advantages of diversification mainly include: First, diversification of business risks. Compared with single centralization, decentralization is equivalent to a portfolio, which can

Avoid the risk of putting all your eggs in one basket. However, there is a hypothesis that for our entrepreneurs who practice diversified management, we can manage our various business fields like single management, and there is no shortage of management ability and personal energy. In practice, it is difficult for us to guarantee that we will be diversified as a unified management list. If you are not familiar with your own field and lack the management ability in a certain field, the risk of decentralized operation will be discounted or even increased. A large number of examples of diversification failure can illustrate this point. Second, replace the market with enterprises (factor market replaces product market) to reduce transaction costs. According to Coase's theory, replacing the market with an enterprise, that is, replacing a series of external transaction contracts in the market with a contract within the enterprise, can save external transaction costs when the internal management cost of the enterprise is less than the transaction cost of the external market. Third, it is conducive to internal cooperation and improve efficiency. Diversified enterprises can combine the original business activities of multiple single unified enterprises into one enterprise, or put multiple industries and products into one enterprise or enterprise group, which can fully coordinate and integrate human, financial, material and information resources, rationally allocate resources and improve resource utilization efficiency. Fourth, establish a good corporate image and make yourself in a favorable position in business. It can be said that most of the world's top 500 enterprises are diversified, large-scale and influential. When trading and cooperating with other enterprises, it undoubtedly increases their bargaining power. Fifth, ensure your own supply and supply quality.

The disadvantages of diversification mainly include: First, it requires higher management. Diversified classics >>