Business Analysis Tti s Diversification Strategy

TTI’s diversification strategy is currently based on creating a financial hub that would allow them to leverage their current business, while growing their new product lines. TTI’s decision to create a one-stop financial hub for their consumers in theory sounds like a good idea, as they would be able to cross sell from their core tax preparation business to these other â€Å"somewhat related† financial businesses. However, many of the businesses they are entering are targeting the wrong consumer, leading to value destruction. In general, the financial hub seems to be a product of unrelated diversification, in the hopes that the company will be able to leverage its current consumer base to grow the hub; however, since the company has little to no knowledge about these acquisitions and the businesses they compete in, there is high potential for dis-synergies. Though the businesses are in the financial sector, TTI’s core competency is unrelated to the financi al hub. Since the tax business is the core of the financial hub, the discussion of synergies will be based on the core business and the acquisitions. The first area of diversification was from Eldo Financial. Eldo and TTI are two completely different businesses that appeal to two very different consumer bases. Eldo Financial specializes as a discount brokerage. The original thought was that the potential synergies between these two companies would be based on economies of scope, such that these two businesses together would costShow MoreRelatedThe Hoover Company and Dyson2418 Words   |  10 PagesTable of Contents Question 1 2 Dyson’s Value Chain Model 2 Competency framework model 3 DISCUSSION AND ANALYSIS 4 Question 2 5 VRIO FRAMWORK 5 DISCUSSION AND ANALYSIS 6 Question 3 6 Question 4 7 References: 8 Question 1 Using framework from the chapter, analyse the strategic capabilities of Dyson. Dyson’s Value Chain Model Support Activities FirmInfrastructure | Structuring and planning, HQ in UK, manufacturing and testing facility in Malaysia with 120 testing stationRead MoreCase Studies67624 Words   |  271 Pageseffective case analysis C-3 CASE 1 CASE 2 CASE 3 CASE 4 CASE 5 CASE 6 CASE 7 ABB in China, 1998 C-16 Ansett Airlines and Air New Zealand: A flight to oblivion? C-31 BP–Mobil and the restructuring of the oil refining industry C-44 Compaq in crisis C-67 Gillette and the men’s wet-shaving market C-76 Incat Tasmania’s race for international success: Blue Riband strategies C-95 Kiwi Travel International Airlines Ltd C-105 CASE 8 Beefing up the beefless Mac: McDonald’s expansion strategies in India: C-120 Read MoreAbrahamson, E. (1996). Management Fashion. Academy of Management Review, 21, 1, 254-28515598 Words   |  63 PagesManagement Fashion Author(s): Eric Abrahamson Source: The Academy of Management Review, Vol. 21, No. 1 (Jan., 1996), pp. 254-285 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/258636 . Accessed: 24/08/2013 23:34 Your use of the JSTOR archive indicates your acceptance of the Terms Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use,