What are the primary benefits and risks associated with related Coursework

What ar the primary benefits and risks associated with related diversification - Coursework ExampleRelated diversification in any case helps in spreading the risk. This is through by manufacturing similar good or those that are related to them, therefore leading to similar service being offered, or penetrating new markets.When a company can use existing resources and experience, it gets to bang a better quality due to the company producing part of the raw material or components for its chief(prenominal) exertion line. This eventually leads to lower prices and eventually widening the market. It also assures the company of regular supplies. This in twine puts the company in a strategic position, therefore, less competition.Another benefit is that strategic goals can be combined. When everyone has the same objective, then there is the possibility of achieving even more and, as a result, opportunities resulting throughout the production can be shared and fully utilized. It also an opportunity to a firm to share technologies, acquired skills and experiences that the companies have. They are also able to enjoy the same distribution channels, similar techniques of running a business and adapting resources. It also leads to economies of scale being achieved through the elimination of different types of expenditure when more than one business natural action is developed in a common company (Corporate Strategy).The risks associated with related diversification include changing conditions, chastisement to predict future success because there may be divestment due to changing situations. If diversification is do for wrong reasons, it could lead to failure of creating value. The company also faces a risk of reduction in