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Evaluation of Corporate Diversification Strategies. An Evaluation of Corporate
Diversification Strategies SINGLE BUSINESS STRATEGY ...
... Strategy evaluation is an activity that determines to ... priorities and steering corporate
resources into ... decisions dealing with diversification Business-level ...
... Analysis and Evaluation Under Arnault, the company was the ... found their corporate
strategy was diversification into a ... Speaking in a corporate sense, much of LVMH ...
... term corporate debt, long-term corporate debt, and ... 1998: 1). External Factor Evaluation
Matrix Key ... two strategies come to mind diversification of products and ...
... This activity is driven by corporate or strategic ... can be done through a thorough
evaluation of the ... about the risks and benefits of diversification strategies. ...
Submitted by kapilsharma on March 27, 2008
Category: Business
Words: 2499 | Pages: 10
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An Evaluation of Corporate Diversification Strategies
SINGLE BUSINESS STRATEGY
Company: AMD
Single business: 95% or more of firm revenues comes from a single business. Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs, manufactures and markets microprocessors for the computing, communications and consumer electronics markets. The company also markets embedded microprocessors for personal connectivity devices and other consumer markets. The leading semiconductor company has manufacturing and testing facilities in the United States, Europe and Asia, and sales offices throughout the world (AMD 2006).
Sales by Business Area
It principally concentrates in semiconductor manufacturing. Total net sales for 2005 of $5.8 billion increased 17 per cent compared with net sales for 2004 of $5.0 billion (AMD 2006). This growth was driven by the performance of its microprocessor segment where net sales of $3.8 billion increased by 50 per cent compared to 2004, due to increased unit sales and average selling prices (AMD 2006).
Rationale for Business Strategy
Because a large pool of technology makers (computers, phone, gaming, servers, and internet, for instance) rely on the semiconductor industry for manufacturing consumer devices, it makes commercial wisdom for AMD to devote every drop of resources to meet increasing demand for advanced chips.
Appraisal of Business Strategy
Like other chips’ makers such as Intel Corp, AMD pursues a single-product line strategy. That strategy places the chips’ maker in a leading position in the development and innovation of electronics components.
Moreover, AMD’s single business model has earned the company the reputation as one of the most recognizable computer processor brands against staunch challengers like Intel Corp., and Samsung Electronics Co. Ninety per cent of the top 100 and more than 45...
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