After reading this article you will learn about the classification of plans. Class # 1. Classification on the Basis of Levels in the Organisation: Similar to objectives, plans are made for different organisational levels. Plans classified on this basis are discussed below: 1. Strategic Plans: Strategic plans are made to achieve the overall organisational goals. They achieve strategic goals through [...]
After reading this article you will learn about the horizontal and vertical diversification of firms. Horizontal Diversification of Firms: It means adding parallel products or services to the existing product/service line. The existing technical, marketing and financial expertise is applied to new products also. Horizontal diversification can take the following forms: 1. Concentric diversification: It is a form of horizontal [...]
After reading this article you will learn about:- 1. Causes of External Growth Strategy 2. Merits of External Growth Strategy 3. Limitations. Causes of External Growth Strategy: 1. Economies of scale: Small firms have limited resources (financial and non-financial) and generally produce goods at high cost. They buy in small quantities and, therefore, pay high price for materials and other [...]