diversification
What diversification means in Business A-Level, as defined for AQA.
Definitions of diversification
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Reference: AQA
Doing both at once, which spreads risk across markets while asking the firm to learn two unfamiliar things at the same time.
An Ansoff growth strategy involving the development of new products for new markets. Related diversification involves markets or technologies connected to existing operations; unrelated (conglomerate) diversification involves entirely new industries.
Topics that use diversification
- Mission, corporate objectives, functional objectives and strategy (AQA A-Level)
- Strategic direction: choosing which markets to compete in and what products to offer (AQA A-Level)
Related terms
- corporate objectives
- Ansoff matrix
- Ansoff's Matrix
- balanced scorecard
- conflicting objectives
- Corporate Objective
- external environment
- Functional Coherence
Using diversification in the exam
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