Annotated Bibliography Sample on Value Creation through Diversification

Cretu, R. F. (2012). Corporate governance and corporate diversification strategies. Review of International Comparative Management / Revista de Management Comparat International, 13(4), 621633. Retrieved from http://www.rmci.ase.ro/.

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In this article, the author has critically analyzed the existing relationship that exists between corporate governance and the various diversification approaches in the context of the economic crisis. Various opinions were collected from specialists in corporate governance which is based on the theory individual organizations. It also attempts to make clarifications on the relationship between different actors to the determination of overall management.

The author first analyzed the known reasons to approach diversification which are economies of scale and synergies. From this analysis, the relationship between an organization's value and structure of corporate governance in the context of corporate governance were discovered. The research help identifies ways of sorting out various issues in an organization related to diversification. However, the limitation is that there exists value reduction in an organization due to the inefficient policies linked to the level of division and lack of managerial experience.

Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic Management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons.

The book analyzes the strategic management concept and tools in the contemporary business environment. According to the author, the current economic recession in the global business is more difficult and complicated than it was three years ago. Many business premises have vanished, and the consumers on the other side have changed. These consumers are extremely sensitive to pricing and are very reluctant in purchasing various products and services. This has further been added with a high rate of unemployment, and many new entrepreneurs into the existing business market. For this reason, business ventures that have survived the economic turmoil are today meaner than ever before.

Dyer, Godfrey, Jensen & Bryce have delivered an insightful overview of strategy with a mix of applications drawing on their individual experiences. Acting as a consultant in an organization the authors help develop products in a way the spark new ideas. The significance of the research is that it coaxes creativity and the general performance in an organization.

Yigit, I., & Behram, N. K. (2013). The relationship between diversification strategy and organizational performance in developed and emerging economy contexts: Evidence from Turkey and Netherlands. Eurasian Business Review, 3(2), 121136. doi:10.14208/ebr.2013.03.02.001

The authors aimed at determining the difference between various types of diversification and organization performance values with Turkey and Netherlands as case studies. There was some significant difference across the developed and developing nations in relation to diversification and organizational performance and for that reason mixed, and inconclusive empirical research methods were applied in the study.

The result of the study was expected to vary across nations because of the existing influence of institutional environments. For this reason, the degree of the market and organization development was the determining factor. In this case, therefore, firms located in less institutionally developed economies would achieve high benefits from diversification that those in more developed economies. The study shows the reasons behind the variation of organization performance between Turkey and Netherlands. However, the limitation is that the survey focused on a limited area and the results are not applicable to other areas.

Zhang, P. (2014). Understanding diversification strategy in venture capital market. Entrepreneurship Research Journal, 4(3), 277296. Doi: 10.1515/erj-2013-0058

The author conducted research on the diversification strategies used in venture capital market. Investment strategies in venture capital have proved to be essential to the entrepreneurs, and for that reason, two polarizing investment strategies are given much attention: specialization and diversification. According to the study, specialization focused on a few businesses from an individual industry while diversification focuses on multiple industries.

The author used Pratts Guide to Private Equity and Venture Capital to study the VC market. The information provided a comprehensive insight into the types of investors, and stages of the market which were used as variables in the analysis. The study indicates that diversification is directly associated with performance. The limitation is that the result fails to support the overall structural coordination required.

References

Cretu, R. F. (2012). Corporate governance and corporate diversification strategies. Review of International Comparative Management / Revista de Management Comparat International, 13(4), 621633. Retrieved from http://www.rmci.ase.ro/

Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons.

Yigit, I., & Behram, N. K. (2013). The relationship between diversification strategy and organizational performance in developed and emerging economy contexts: Evidence from Turkey and Netherlands. Eurasian Business Review, 3(2), 121136. doi:10.14208/ebr.2013.03.02.001

Zhang, P. (2014). Understanding diversification strategy in venture capital market. Entrepreneurship Research Journal, 4(3), 277296. Doi: 10.1515/erj-2013-0058