CHAPTER 8: CORPORATE STRATEGY: DIVERSIFICATION AND THE MULTIBUSINESS COMPANY

Diversification means more than one industry is involve in a business and then, the business that makes a joint venture with another business can reduce their cost. Later, a move to diversify into a new business must be pass three tests which are industry attractiveness test that offer an opportunity for profits, second, cost of enter the target industry must not be so high and lastly is better-off test or synergy that means, more than strong or provide the best for company. Although, the businesses can be diversify into three types which are related business, unrelated business and both of related and unrelated business. The value chain is the measure whether the business is related or unrelated business. Finally, diversified company can choose their strategy option, whether it broader the diversification base, narrow diversification base and restructure the company’s business lineup or multinational diversification. 

WEEK 9: OSHIMA JAPANESE RESTAURANT

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In my opinion, this restaurant is interesting because it serve Japanese cuisine and had use halal ingredient in their food. I'm also salute to Pn. Asnidar because she have high strength to stand up again after the business is going down. There are a lot of barriers that she must to face it. for instance, to get halal certificate from JAKIM, to gain trust from supplier, to find trustworthy workers and so on. The common strategy that she use in the business is to understand customer needs, get a strategic location, brand awareness and make a promotion.

CHAPTER 8: STRATEGIC FOR COMPETING IN INTERNATIONAL MARKETS

It is benefit among the company to enter foreign markets to develop business to the world wide, can gain more customer and profit . However, before the business enter to the foreign markets it must face many obstacle or barriers to get success in that field. for instance, political and economic risks.



As a seller, business must produce the product that match to the customer needs and preferences, culture and their various norm.