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Assignment | Strategic Management of Companies

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Added on  2019-11-19

Assignment | Strategic Management of Companies

   Added on 2019-11-19

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Running head: STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENTName of the StudentName of the UniversityAuthor’s note
Assignment | Strategic Management of Companies_1
1STRATEGIC MANAGEMENTUsing a business publication (Forbes, Wall Street Journal, Business Week, Fortune,FastCompany) article, find a company that has expanded by diversification. Describe the type ofdiversification and how the diversification created value. Evaluate how successful you think thediversification will be in future (5 or 10 yrs., for instance). What issues or challenges is thediversification likely to cause? Disney is a power house and of the largest organizations in the world. This multinationalcompany was established by the famous visionary Walt Disney in the year 1923. Walt Disney isknown to be a risk taker, as an entrepreneur he had a wide vision for his company. One of themain strategies of the company is to expand with diversification. Form the inception of theestablishment as an animation company Walt Disney had versioned to open a theme park. Hisidea was so strong and powerful in his mind that he had invested almost everything towards theset-up of the first theme park in 1955. At that point of time Disney had invested almost 17million dollars on the project that was constructed over an area of 160 acres. There are almost 14million visitors who spend close to $3 billion in Disneyland (Yang, Narayanan & De Carolis,2014).This is a case of horizontal diversification where an animation company changed the pathto provide the existing consumers of the service to a new and unrelated service. There is mediagroup, a clothing line, and a line of stationery items, theme parks and many more. In next fiveyears the company is going to earn more and more turnover generating more cash flow into thebusiness as Disney merchandise has gained immense popularity among the young kids. This willonly make way for the company to invest in more in diversification opportunities in order toexpand the business the issues or challenges faced by the diversification can be of many types:criticism of the brand is one for constantly diversifying in various sectors for the purpose of
Assignment | Strategic Management of Companies_2

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