In the wake of increased competition, changing customers and shareholders’ expectations and increasing cost of production in the business environment, most companies are embracing diversification as a strategy to enable them to stay afloat and remain competitive (Needle 17). It is a risk management strategy that entails the process of capital allocation in a way that minimizes exposure to any specific risk or asset. The common goal of diversification is to minimize volatility or risk by investing in various assets (Vashisht 103). Adoption of this strategy by this company will enable it to construct different types of investment apart from its core business, with the view of yielding higher returns and reducing risk that would otherwise be posed by concentration on core business only. Upon adoption of this strategy, the company will follow through the marketing plan to focus on the suggested investment so as to reap the benefits that will arise from it, in the short and long run.
Today’s business environment is characterized by increased volatility and competition that threatens businesses’ ability to achieve their set goals and objectives. More and more businesses are finding it difficult to make profit due to high costs of production and reduced revenues (Vashisht 8). It is becoming apparent to most businesses that they need to adopt new strategies in order to increase their revenues, maximize profits, and ultimately achieve their goals and objectives including for expansion and growth (Needle 48). As consultants contacted by the investment bank, we will develop a marketing plan to help you to diversify your investing in a project that is unrelated to your core business. In particular, this report will outline the marketing plan for diversification of your investment into coffee shops business within the Sydney area. As you will find out from the report, this investment will enable you to not only minimize risks associated with focusing on core business only, but also help you to boost your overall revenues within a relatively short time, a factor that will play well into your short, medium and long term business goals.