diversification

1. EVALUATING
THE
STRATEGIES
OF
DIVERSIFIED
AGENCIES

2. Diversification Strategies
Diversification strategies is used by an
organization to launch new products , serve new markets, or
does both simultaneously.
Expansion through Diversification
Expansion through diversification involves an extensive
change in the business of an organization in terms of
customer functions, customer groups, or alternative
technologies.
In simple, it means diversification into related or unrelated
businesses.

3. Types of diversification strategies
There are two types of diversification strategies, which are as
follows.
Concentric Diversification
It refers to an expansion activity taken by an
organization that is related to its existing business. This is also
know as related diversification.
Conglomerate Diversification
Implies a strategies that requires taking up
activities unrelated to the existing business of an organization.
This is also called unrelated diversification. It is practiced in
organizations when they have excess surplus capital.

4. INDIAN DIVERSIFICATION STRATEGIES
Diversification is one of the very important areas in the organizations today. It
plays a great role in the success of organizations. The following Indian
organizations are.
TATA
 Tata Consultancy Services Limited
Tata Iron & Steel company Limited
Tata Tea Limited
Tata Motors Limited
RELIANCE
Petroleum
Natural gas
Petrochemicals
Retail stores
Polymers
Chemicals
Textiles

5. STRATEGIC EVALUATION
It is important to carry out strategic evaluation because the external and internal
environment factors around the organization change quickly.
Techniques of
strategic evaluation
Techniques of
strategic control
Techniques of
operational
control
Strategic
Momentum
Control
Strategic Leap
Control
Comparative
Analysis
Internal
Anlaysis
Comprehensive
Analysis

6. TECHNIQUES OF STRATEGIC CONTROL
Strategic control continuously scans the environment for the changes that may
affect an organization’s strategy.
The organization operating in a stable environment uses the Strategic
momentum control techniques,.
whereas, the organization operating in an unstable environment uses the
Strategic leap control techniques.
STRATEGIC MOMENTUM CONTROL
 This control techniques are used in a stable environment and focus on the
validity and stability of strategies.

7. Resposibility
control center
Strategic
Momentum
Control
Strategic
Group Control
Underlying
Success
Factors

8. Strategic Leap Control
In an organization, strategic leap control is implemented, if the environment
is unstable. Strategic leap control focuses on finding the new ideas or
requirements to update the ongoing changes.
Strategic
Issue
Management
Strategic Leap
Control
Strategic Field
AnalysisScenario

9. CRITERIA FOR EFFECTIVE STRATEGIC EVALUATION
In an organization, effective strategic evaluation is done only in the presence
of a good control system. For instance, an organization practicing a
differentiation business strategy can use quality control as an evaluation
technique.
Effective
Evaluation
Timely
Action
Term
Controls
Counting
the
important
Activities
Minimum
Information
Rewarding
for effective
performance

10. Strategic Evaluation in Different Organizational Areas
As already learned, strategic evaluation and control implies estimating and
assessing the output of the organizational performance. The control process
helps in measuring the actual achieved targets with the set targets to identify
performance gaps.
Areas of
strategic
Evaluation
Marketing
Issues
Research
Developmen
t
Informa
tion
system
Finance
Accounting
Issues

11. THANK YOU