Diversification to New Products

Expansion of production capacity and diversification to new products only after addressing safety and pollution issues ... 

Enable diversification to new products using existing machineries and faciUties as much as possible or by adding a minimum of additional equipments, so that the company can survive even when there is reduction in demand for the present... 

Safety of personnel and plant units must be the most important consideration while expanding production capacity and diversification to new products. There shall be need for additional manpower for operation of plant and auxiliaries, maintenance, handling of raw material and finished products, filling up tankers, inventory management, etc. Only qualified and experienced new persons shall be engaged. 

No unsafe condition shall be created anywhere in the plant due to diversification of the plant to new products. 

The negotiating and conclusion of license agreement have become a specialised profession. Information obtained by patents can help companies to find new products or processes for expansion or diversification of then-manufacturing activities. 

Instead of commercializing new products on the basis of these formidable technical capabilities, Mobil chose in 1974 to become a conglomerate through unrelated diversification with the purchase of two major U.S. companies, Montgomery Ward, for decades Sears Roebuck s primary rival, and the Container Corporation of America. Inevitably the strategy failed, and Mobil sold off the first in 1986 and the second two years later. In 1989, 7 percent of its operating income came from petrochemicals. By 1992 it was... 

It seems apparent that the various forces which today are acting to widen the chemical industry s markets by product diversification and integration toward the consumer will continue unabated into the 1960 s. The rapid addition of new products to the output of the chemical industry has made it almost a cliche for companies to state publicly how large a percentage of sales is accounted for by products which did not exist 5 or 10 years ago. Added to the growing complexity of the product mix of the industry is the industry s... 

Concentric diversification. New products are added but they are related to the current ones. 

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