Diversification is one strategy in portfolio management to spread the normal market risks...

Question:

Diversification is one strategy in portfolio management to spread the normal market risks associated within the enterprise. Applying this to property management, can you cite examples of local or multi-national companies operating in the country (Philippines) that are employing horizontal integration and vertical diversification strategies?

Diversification:

Diversification is the process by which a company allocates funds in a way that reduces the exposure to any risk. On of the idea that a company can use to implement diversification is by having a range of products in such a manner that if one product fails, the other product can sustain the company. Portfolio management can be implemented using diversification as a strategy.

Answer and Explanation:

Applying this to property management, can you cite examples of local or multinational companies operating in the country (Philippines) that are employing horizontal integration and vertical diversification strategies?

IBM is a multinational company in the Philippines. The company was started to automate the business, it has since then been applying horizontal diversification, and it has moved to other areas of technology which include Artificial Intelligence, and cloud computing.

Ayala corporation is a company based in the Philippines that has vertical diversification by having an interest in the different fields, which include retail, education, real estate, and telecommunication.


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How to Reduce Investment Risks

from Finance 305: Risk Management

Chapter 3 / Lesson 8
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