Sample Essay On Diversification Plan

Part 1Introduction Companies diversify for different reasons. It could be to diversify their income, production, increase profitability or become more risk averse (Kachru, 2005). For any of these or more reasons, a diversification plan is required. It involves a financial analysis of the available opportunities for diversification. Some of the elements considered include the initial capital investment, the return on investment and the risk factor involved. Given the fact that it costs to analyze the opportunities available, it is imperative only to commit finances to the most desirable and viable opportunities. For this diversification plan, I would commit my finances to the investigation of option H. This option entails opening a facility to be used for training airline pilots. This option uses the concentric diversification model that would be advantageous for the current business (Rao, Rao & Sivaramakrishna, 2008).The training facility utilizes existing technologies in the industry and also the marketing system used by the airline business. Additionally, it allows the airline business to upgrade its systems, thereby contributing to the company’s business model. Besides this, option H taps into an existing market created by the regulations of the Federal Aviation Administration that airlines must carry out the recurrent training of their pilots. The training facility can also be used by our airline’s pilots for recurrent training. There is also a confluence of relatively low initial capital investment, high return on investment and low-risk factor (Kozami, 2005). One ethical implication of this recommended action is the divide between the training facility and the airline business, especially if the training facility is going to operate independently of the airline. As an independent entity, the training facility commitment would be to its customers, and as such, would treat the airline as a customer.Part TwoIntroduction The design of the Capella MBA program is intended to help students taking the course to develop as practitioner-scholars that meet and surpass the needs of current or desired professions, and any challenges that might result from pursuing such professions. In order to achieve this, the Capella MBA program is based on established outcomes and competencies which are grounded in the basic knowledge that is required by an MBA leader. This is a reflection of the knowledge and skills that I have developed over the six weeks in which I have taken this course.Evolution of Abilities Learning does not just entail gaining the knowledge, but also the improvement in the ability to apply the knowledge in relevant situations. The course has improved my ability to apply the knowledge gained and the understanding of business systems. This has been helpful, not just in business, but also in other disciplines. The knowledge of business processes and the technology available has been complimentary in understanding disciplines such as marketing, operations, business leadership, accounting, finance, and econometrics. The course has also enabled me to apply principles of ethics in business decisions, particularly in the diversification plan.Relevant Skills and Concepts The most relevant concept and skill was data analysis in order to inform the business decision. In business, one has to make decisions on a daily basis. I have found that these decisions are based on the information available to the business owner. The analysis of this information is important so as to make decisions that are supported empirically. The skill and concept also came in handy during the diversification plan exercise.Growth in Professional and Academic Goals The course has been integral in developing my academic and professional goals. Academically, I understand that it is not enough to just gain the knowledge, but one should also strive to apply the gained knowledge in appropriate situations. This was especially so when preparing the diversification plan. I believe that this time, unlike previous times, my decision on the best business opportunity was based on a consideration of the facts using the knowledge gained.

References

Kachru, U. (2005). Strategic Management: Concepts and Cases. New Delhi: Excel Books.
Kozami, A. (2005). Business policy and strategic management. New-Delhi: McGraw-Hill Published.
Rao, C. A., Rao, B. P., & Sivaramakrishna, K. (2008). Strategic management and business policy: Texts and cases. New Delhi, India: Excel.