To What Degree Does Diversification Reduce Risk? What Arguments Can Be Formed Against Diversification? Use Examples from Your Own Company or One You Know Well.

1440 WordsMay 25, 20126 Pages
Diversification: Designed for Effort Reorganisation for an intentional emphasis Child (2005) Suggests a bureaucratic structured organisation is not transparent for novelty and tractability. However, hierarchal structure has been working for decades and some employers like to work this way. Many employees prefer this type of structure as this will help them advance their careers when they perform. Organisational ‘Blueprint’ gives employees their boundaries of operations; in addition, this gives managers the knowledge of their employees and ultimate control. Even though this might be a good formal structure, in today’s market this would not help the organisation to have any competitive edge. Management needs to lead with diversity,…show more content…
Therefore, they remain in continuous request, predominantly after one recalls whichever threat is related to hedge fund, capitalising decreases significance, especially once the transfer of monies to resources are assigned to assets for products. Nevertheless, when organisations acknowledge a `portfolio diversification’ this can decreases management interpretation. Gregoriou (2006) suggests an essential question requires addressing: ….the optimal number of funds of hedge funds to effectively benefit from diversification. Using the Altvest database, we provide evidence that from a pure market risk perspective, existing funds of hedge funds are sufficiently well diversified. An organisation should not and would not invest in just one activity, this shows little common sense as if the investment were to fail all cash flow would probably cease to exist. Businesses merge for this very reason, which then enables each organisation to increase in value. This diversification enables a wider output of investment and thus supplies gratification to each firm. Diversified firms that communicate will have a greater ability to share information and technology; however, one must remember that with mergers and acquisitions each business needs to know all mechanisms of the other to be successful. A new structure might have to deploy between the organisations to enable full growth of any on-going operations. In

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