Related Diversification Using Core Competencies in South Korean Dairy Industry

This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind.

Hidden-state-only speciation and extinction models provide accurate tip estimates of diversification rates

1. State-dependent speciation and extinction (SSE) models provide a framework for testing potential correlations between the evolution of an observed trait and speciation and extinction rates. Recent expansions of these models allow for the inclusion of "hidden states" that, among other things, allow for rate heterogeneity often observed among lineages sharing a particular character state. However, in reality, multiple circumstances and interacting traits related to a focal character play a role in changing diversification dynamics of a lineage over time, restricting the use of available SSE models that require trait information to be assigned at the tips. 2. Here we introduce MiSSE, an SSE approach that infers diversification rate differences from hidden states only. It can be used similarly to other trait-free methods to estimate varying speciation, extinction, but also different functions of these parameters such as net-diversification, turnover rates, and extinction fraction. Given the size of the model space, we also describe an algorithm designed for efficiently searching through a reasonably large set of models without having to be exhaustive. 3. We compare the accuracy of rates inferred at the tips of the tree by MiSSE against popular character-free methods and demonstrate that the error associated with tip estimates is generally low. Due to certain characteristics of the SSE models, this method avoids some of the recent concerns with parameter identifiability in diversification analyses and can be used alongside regular phylogenetic comparative methods in trait-related diversification hypotheses. 4. Finally, we apply MiSSE, with a renewed focus on classic comparative methods, to understand processes happening near the present, rather than deep in the past, to examine how variation in plant height has impacted turnover rates in eucalypts, a species-rich lineage of flowering plants.

PREDICTORS OF SMALL BUSINESS DIVERSIFICATION

The article discusses the features of diversification of small businesses, discloses its advantages for solving the problem of rationalizing activities. The factors of production and economic activity of the enterprise are considered, which are predictors of diversification and can be used in management as indicators. Diversification of the enterprise is one of the main ways of successful survival of business entities in the modern realities of competition. Nowadays, many organizations are successfully diversifying their activities, flexibly adapting to market conditions and increasing their financial well-being. The algorithm of the process of implementing the related diversification of the production activity of a small enterprise is given. The process of diversification of activities is highly costly, and for small enterprises, a related form of diversification aimed at expanding the range of products is promising. It is scientifically substantiated that this form of diversification is less risky, and requires the involvement of fewer resources of a small enterprise, at the same time, it provides an increase in the effectiveness of activities in a relatively short time interval.

Analisis Strategi Bisnis untuk Mencapai Keunggulan Kompetitif di UMKM Nukida Jati Bojonegoro

This study aims to identify business strategies implemented by MSMEs Nukida Jati to have a competitive advantage. The research method uses descriptive qualitative. Sources of data used are primary and secondary data sources. The technique of collecting data is the interview, observation, and documentation. Data analysis techniques used data reduction, presenting information data, and drawing conclusions. The calculation results of the IFE (internal factors) and EFE (external factors) matrices show that Nukida Jati MSMEs are in quadrant one. Combining these matrices in the SWOT analysis shows that the company's position allows it to maximize the opportunities and strengths. An alternative business strategy that can be applied to Nukida Jati MSMEs in this position is related diversification. This business strategy allows the company to produce various kinds of handicrafts with different specifications according to consumer demand with the same raw materials. Further product diversification can create wider market opportunities, especially if added with adequate digital marketing support

Analisa Strategi Bisnis PT XYZ dalam Industri Retail Fashion di Indonesia

The purpose of this study is to identify internal and external factors that affect the company, which is engaged in the fashion retail industry, in the fashion retail industry, and to find out the right and effective business strategies to improve the company's sales performance in the face of intense competition in fashion retail industry in Indonesia. Data collection techniques performed by the author are primary data (interviews and observations) and secondary data (sales data, inventory data, case studies and literature). The stages of analysis conducted by the author are divided into three stages, namely the input stage, followed by the matching stage, and the final stage is the decision analysis stage. The results of this study are about three strategies that can be used by companies, Product Development with a score of 6.46, Market Development with a score of 5.93 and Related Diversification holding the highest score of 6.64. Tujuan penelitian ini untuk mengidentifikasi faktor-faktor internal dan eksternal apa saja yang mempengaruhi perusahaan, yang bergerak di bidang retail fashion, dalam industri retail fashion, serta untuk mengetahui strategi bisnis yang tepat dan efektif untuk meningkatkan kinerja penjualan perusahaan dalam menghadapi persaingan yang ketat dalam industri retail fashion di Indonesia. Teknik pengumpulan data yang dilakukan oleh penulis adalah data primer (wawancara dan observasi) dan data sekunder (data penjualan, data stok barang, studi kasus dan kepustakaan). Tahapan analisa yang dilakukan oleh penulis terbagi menjadi tiga yaitu tahap masukan (Input Stage), dilanjutkan dengan tahap pencocokan (Matching Stage), dan tahap terakhir adalah tahap analisa keputusan (Decision Stage). Hasil dari penelitian ini adalah ada tiga strategi yang dapat digunakan oleh perusahaan yaitu Produk (Product Development) dengan skor 6.46, Pengembangan Pasar (Market Development) dengan skor 5.93 dan Diversifikasi Terkait (Related Diversification) memegang skor yang paling tinggi yaitu 6.64.

Study on the Impact of Industrial Agglomeration on Ecological Sustainable Development in Southwest China

Southwest China is a fragile terrestrial ecosystem restricted by its geological background, which leads to a contradiction between its industrial economic development and the ecological environment. In this study, to explore the influence and mechanisms of the three industrial agglomeration modes, namely, specialization, related diversification, and unrelated diversification, on the eco-efficiency of the region, linear and nonlinear regression models were applied to the data of five Southwest provinces from 2006 to 2018. Specialization agglomeration had a significant negative impact on the eco-efficiency of four provinces outside Tibet in Southwest China. With the decrease of industrial specialization, their eco-efficiency improved. The effects of related diversification agglomeration on the ecological efficiency of four provinces outside Tibet in Southwest China showed a “U” curve. The degree of industrial diversification in these provinces exceeded the critical value of 1.46, and the effect on eco-efficiency was shown. The unrelated diversification agglomeration had a negative effect on the ecological efficiency of the four provinces outside Tibet in Southwest China. The degree of industrial-unrelated diversification in Guizhou Province increased slightly, which was not conducive to the improvement of local eco-efficiency. Additionally, it decreased significantly in other provinces, which caused the improvement of local eco-efficiency. The conclusion provides a theoretical basis for industrial green transformation path selection and related policy formulation in Southwest China.

Symmetric Modeling of Diversification Strategy and Organizational Structure on Financial Performance: Evidence from China

Diversification is a strategy adopted by many enterprises in the process of expansion. The success of the diversification of an enterprise mainly depends on the choice and implement of strategy; choosing an organizational structure that fits the type of diversification strategy used is fundamental to improving financial performance. Based on the empirical research method, this study establishes a symmetric model of diversification strategy and organizational structure on financial performance and selects data from 613 A-share-listed companies in China, from 2012 to 2016, to test the impacts of unrelated and related diversification strategies on financial performance, as well as the moderating effects of united company, holding company, and multidivisional structures on such relationships. The results show that there is asymmetry between the diversification strategy adopted and financial performance, and a related diversification strategy should be adopted as a priority; the symmetry of an unrelated diversification strategy and holding company structure on financial performance is partially confirmed, and other elements should be adopted, simultaneously, to improve this symmetry; a related diversification strategy and multidivisional structure on financial performance is symmetric. The above findings will provide references for the diversification strategy choice and the organizational structure design of enterprises.