In this article we will discuss about the diversification of firms. When considering 'synergy', it is important to note that businesses can be similar with respect to some resources while being different in terms of others. The key to successful diversification is to group together those businesses which, despite their differences, have at least one common resources need. Such businesses [...]
In this article we will discuss about the distribution function and its strategy as a part of business planning and strategy. Distribution Function: The function of distribution in case of a large firm can be seen from three view points: (a) From a Value-Added Perspective: The distribution function provides 'time and utility'. An inability to deliver goods within the promised [...]
In this article we will discuss about the mathematical analysis of firm’s capital investment project. The net present value of a project is equal to the sum of the present value of all the cash flows (inflows and outflows) associated with the project. NPV = Net present value, An = Cash flow occurring at the end of the year t [...]