Diversification
is companies that have many businesses. During the lecture Miss Ummi have
advice us if we want to open a business it’s better to start with small
business and we also must have our target market. Therefore, with this we can
get success and expand our business.
So, back
to these topics. Before we attend to lecture class my class has attended
tutorial class and we have discussed about UMW case study. Seriously I did not
understand what the case study all about. It is long case study and I just know
that this UMW Holding have four core business which are automotive assembly and
distribution, automotive components OEM and REM, heavy component and last oil
and gas drilling services. So, for the question that have given by Miss Ummi
related with this case study only half I can answer. After having a discussion
in the class I understand what the case study all about. Then, during lecture
class I got prepared for this topic. There also synergy term in this topic that
means 1+1=3. From core concept, creating added value for shareholders via
diversification requires building a multibusiness company where the whole is
greater than the sum of its part. This means that diversifying into a new
business must offer potential for the company’s existing business and the new
business to perform operating as independent and stand alone business. That’s
all for this topic.. (^^,)
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