Diversification

In management of company

diversification is the fact for a Entreprise of creating or of acquiring new activities, or of extending them to other geographical territories. It is intended for:

to divide its Risk S of exploitation
or on the contrary to take new risks to benefit from occasions (real options) and if possible from Synergy S (offensive Diversification)
or to possibly compensate for a retreat of Profitability of its activities and traditional markets (defensive Diversification), it is then a tool of Reconversion).

External diversification/intern

the external diversification is the acquisition of other companies of a different sector or located on a different geographical market,
the diversification interns is the launching of new activities or the prospection of new zones starting from the company.

Tests of diversification (real options)

Diversification can lead to a scattering of means and efforts and must thus be done with precautions. Thus certain diversifications are done sometimes at the beginning by small keys to test new activities being able to be promising without engaging too there of means. It is just a question of taking an option (called real Option compared to a financial option). However this operation must be followed closely, because if the means are insufficient the occasion is likely to be badly exploited.

In finance

The diversification of a stock exchange wallet, and more largely of the Inheritance Net of an individual or an institution, is before a a whole method of Risk management by varying the types of Placement S.

It is a central concept of the modern Théorie of the wallet. Thus certain mathematical models of efficient Diversification are supposed to optimize the awaited Rentabilité wallet according to the level of risk accepted by the holder.

Random links: