Case Study Of A Private Card Business

1258 WordsAug 8, 20156 Pages
This paper is about a private card business HowRu and its subsidiary. Of course as all card companies business is seasonal and the best time is holiday season. This paper will discuss steps the company can take to diversify its portfolio. Next the definition of diversification and its necessity in risk management will be given. Then there will be five steps listed to diversify the card business. Each step will be discussed in detail. Last at least six suggestions will be given to know where and how funds can be allocated for new investments. HowRu a card business and its subsidiary has a 14% share in the greeting card business. Everyone knows the best time is holiday season in this industry. So this company needs to diversify its portfolio in order to generate income to make up for the slow times. How can this company diversify and what ways can they find funds to allocate to new Investments. As I was coming up I was always told you have to budget your money don’t spend it all in one place. Well investing is kind of like that, you do not want to invest all you have in one thing. Diversification is exactly that investing in several funds, stocks, or securities so you have less risk. Every ones risk tolerance is different and all is willing to take a different amount of risk ("Asset Page," n.d.) For a successful business no matter what their risk tolerance is diversification is needed. This process allows for the investments to be spread to multiple bonds

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