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diversification Tagged Articles
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The Challenge of Investing
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| James Dicks examines the challenges of investing in 2010. |
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Markets go upmarkets go down How is it affecting you
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| James Dicks shares the importance of investment diversification in your personal portfolio |
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Warren Buffett Quotes
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| Warren Buffett Quotes |
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A Doodle And A Dream: How McFarlane Turned Spawn Into A Success
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| “In all honesty, I wouldn’t say that the business end of it came with any kind of ease,” says McFarlane. “It was more Darwinian. You have to learn business if you’re going to be self-employed and survive. If you’re a bad businessperson and you’re an entrepreneur, you’re going to be out of business.” Drawing had always been his passion, but not once did McFarlane consider it a career choice. That is, until an injury forced him to reexamine his life. How did this young man with nothing but a dream in mind and a doodle in hand become the success he is today? |
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The Dragon Makes Nice: How Wilson Made His Money – And Then Gave It Away
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| In 1997, before Wilson had become something of a household name thanks to his appearance on CBC’s Dragon’s Den, he had already been ranked one of Canada’s Top 40 Under 40. Now in his 50’s, Wilson could surely sweep the title for this decade as well. How did this small town Prairie boy make it in the world of big business – and with a big heart to match? |
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Are Your Eggs All In One Basket?
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| From a business perspective, diversification stems from spreading sales across multiple product lines with several suppliers, and marketing to varying geographies. Small business owners whose net worth is concentrated in operations that consist of a small basket of product offerings or regional exposure must also prudently manage risk. |
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Euro Dead Zone!
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| The value of the Euro is going down because most of the countries that use it are in economic trouble. |
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CONNECTING IS NOT ENOUGH: When Week is Strong
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| This article originally appeared in The National Networker
How often do you interact personally with your customers? Whether it’s working directly with them, speaking to them on the phone, visiting their offices. If you’re not in regular direct contact there’s a good chance it’s impacting on your ability to either upsell to them or to inspire them to refer you. |
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Why You Shouldn't Keep All Income Eggs in One Basket
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| Clever poultry farmers don't put all their eggs in one basket because it is risky and constrictive. It is risky because the eggs if crammed together in one narrow space may break on the way to market. And selling the eggs in a single package is constrictive in the business sense because the farmer loses the opportunity to fetch different prices for his product. |
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Financial Success Strategy: Diversify Or Die...Regarding Financial Success, One Of Anything, Leads To Negligent Fatality!
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| Times have drastically changed, we are living in a new economy in our world today. It is placing incredible demands on businesses and their employees. Hours are being cut, pay is slashed, unemployment is higher than we've ever seen it and businesses are closing by the droves. And, along with this poor economy, so many other critical fundamentals of society are being effected in negative ways. It requires us to adjust our financial thinking and strategy.
I'm not writing this to discourage anyone. We are all well aware of these facts. Instead, I'm writing this to encourage you to do whatever it takes to hold onto and increase your prosperity or use this opportunity to gain it. It can be done, even in times like this. It's great to feel optimistic about the financial future of the world, but we also need to be realistic.
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Objectivity is a Beautiful Thing
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| Objectivity is a beautiful thing. Unfortunately, all too often we lose the very objectivity that helps us create business value. We simply get too close. |
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Why the Oil Roller Coaster is Over!
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| Oil in the global economy has become more of an indicator for the global economy’s health, where in the past rising oil prices was a bad thing, because it beat up the best consumer in the world. (U.S.A.) The correlation is evolving in the global economy and both stocks and oil may continue to rise together. |
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Are Balanced Funds Really Balanced?
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| After the stock market crash of the late 90’s many experts called balanced funds the saviors of retirement planning and the 401k world. Although they have a lot of strong qualities and their internal strategy is ideal for a goal oriented portfolio, they are not the saviors of the retirement plans in the world!
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How Big Does Your Business Need To Be?
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| Every business needs to evolve, but not every business needs to expand, and one should never expand just for expansion's sake. |
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Eenie Meenie
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| Have you ever found yourself bored with life, of the “same ol" thing, or the repetition of a job that just does not make your engine rev? Did you know that there are many people plagued with the same challenge? The quest for how to make life more exciting. Surprisingly, the same answer works for those looking for a bit of a change in life, and for those looking to safeguard their lifestyle, in a word – diversity. |
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Intercultural Management - The World Is Out There
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| Getting the very best results through their employees is the value of a great manager. In a changing world, their are huge opportunities where intercultural challenges can be both overcome and leveraged. |
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Getting Business Online
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| The Internet is not all about web sites. It is a big and mysterious place that can do wonders for your business, if you think of it that way and let a professional guide you. As with any marketing channel, work it into your plans and your budget and you will see great returns! |
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Diversifying Your Small Business – Part 1
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| Many entrepreneurs learned early on that diversifying their business was a key strategy to their success. Their current success hinged strongly on how well they were able to adapt and change with the shifting tide of the business world and what their clients demanded of them. Without diversification, many businesses can and will go bust. |
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Diversifying Your Small Business – Part 2
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| In part 1 of 'Diversifying Your Small Business' I addressed the factors that impact your business’s need for change. The “Why” and “How to” factors driving this need for change were covered in detail. Finally, it was made clear that because of the ever evolving trends in business, business owners must get on board or fail in their endeavors.
In the second part to this diversification concept, I will address in more detail some of the areas business owners need to work on in order to meet these growing demands. Without addressing these key areas of business development, the cost to your business includes losses in both your customer base and income level. |
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III.b. E-Commerce and Primary Commodity Markets: E-COMMERCE AND SMALL ENTREPRENEURS
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| Most low-income developing countries continue to be primary commodity exporters
(including oil, gas and other minerals, and agricultural products). Thus, short of wholesale
diversification into manufactures and services, their immediate interest is in how
e-commerce may affect competitiveness in their traditional export markets. |
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6.0 The Way Forward: Economic Report on Africa 2007
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| Policies for Achieving Diversification |
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5.3 Conclusion: Economic Report on Africa 2007
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| This chapter has shown that there are clear and measurable determinants of diversification
in Africa at the continental, subregional and country level. Despite the
inadequacy of African data, it may be said that, at least at the continental level, the
diversification process is highly influenced by investment, per capita income, level
of openness, macroeconomic policy stances, governance, and conflict. |
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5.2 Diversification-deepening policies raise growth and TFP: Economic Report on Africa 2007
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| What then do these results imply? They mean that pursuing diversification-deepening
policies could help accelerate growth. Important policy implications of this link
arise with respect to the determinants of diversification that were discussed earlier in the chapter. |
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5.2 Economic growth and diversification: Economic Report on Africa 2007
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| Exploration of the TFP link in Africa |
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5.2 Is it factor accumulation or total factor productivity that drives growth in Africa?: Economic Report on Africa 2007
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| To investigate the link between growth and diversification, it was important to
first quantify the contribution of TFP to economic growth. This section analyses
the sources of growth for African countries using the standard growth accounting
method, making it possible to disaggregate the shares of growth contributed by TFP,
capital and labour. Growth in output is the sum of the growth in capital, labour
and TFP. Capital accumulation is an essential element in the growth process, as it
enlarges the economy’s capacity to produce. Increases in labour or labour force have
traditionally been considered a positive factor in stimulating economic growth. |
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5.2 Growth, productivity and diversification: Economic Report on Africa 2007
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| There is abundant literature that suggests that there is a two-way relationship between
exports and growth. However, an important aspect of this evidence is that it is not
just the level of exports that leads to growth but also the level of diversified exports
or products. |
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5.1 The results vary by diversification regime: Economic Report on Africa 2007
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| At this point, it is worthwhile to recall the five diversification regimes: those countries
with little diversification; countries that started but got stuck in the diversification
process; those with deepened diversification; backsliders in diversification; and
the conflict and post-conflict countries. This report suggests that belonging to a
particular regime has more to do with policy and institutional factors at the country
level. Consequently, there are different determinants when the discussion is brought
to the country level (see table A5.2 for correlation results). |
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5.1 It is not just a matter of policy as institutions matter in diversification efforts: Economic Report on Africa 2007
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| Governance is one of the variables that capture the part that institutions play and
it emerges as strongly significant. In fact, in absolute terms, looked at from the
regional level, governance has stronger marginal effects compared to other variables
in our investigations. |
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5.1 Industrialization strategies still have a place in Africa: Economic Report on Africa 2007
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| Industrial production at the continental level was found to lead to deepening of
diversification. |
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5.1 The development model should determine the optimal trade policy: Economic Report on Africa 2007
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| The two-stage diversification process from economic history has been registered both
in open and closed economies. The difference between the two is that the turning
point after reasonable and sustainable development has been achieved occurs at a
much earlier point for open economies compared to the case for closed economies. |
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5.1 There can be little diversification without an optimal trade policy: Economic Report on Africa 2007
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| The trade policy question and its role in economic growth and development continues
to dominate much of the debate in this era of globalization. |
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5.1 Faster economic growth could assist in diversification efforts: Economic Report on Africa 2007
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| The results for Africa, shown in table A5.1, suggest further that as income per capita
increases, there is a tendency for African economies to experience improvement in
their diversification processes. This is a very significant result and it is in line with
other empirical evidence, (see Imbs and Wacziarg 2003), which shows that poor
countries tend to diversify at first as their incomes rise, before they later begin to
become more specialized. African countries also fit into this theory of the U-shaped
stages of diversification. |
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5.1 Insufficient investments in Africa have hindered the deepening of diversification: Economic Report on Africa 2007
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| Using the results for Africa shown in table A5.1, it is possible to compute what one
could call a turning point in the relationship between investment and diversification. |
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5.1 Investment is vital for an economy to diversify: Economic Report on Africa 2007
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| The inverse relationship between investment and the diversification index shown in
table A5.1 indicates that as the level of investments increases, there is a tendency for
economies to become more diversified. The smaller the diversification index gets, the
more diversified an economy becomes, and vice-versa for specialization. Unless a
country commits a sufficient portion of its national income to building capital stock,
it is unlikely to be able to diversify. Investment as measured by gross fixed capital
formation turns out to be a key determinant to Africa’s diversification results. |
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5.1 Determinants of diversification in Africa: Economic Report on Africa 2007
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| Diversification and policy variables constitute a two-way process in that diversification
not only influences policy outcomes, but is itself influenced by policy variables.
This proposition naturally leads to the search for those economic and non-economic
policy actions that are likely to affect the level and rate of diversification in a country.
What evidence is there that links economic and non-economic variables with
national capacity to diversify? |
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Overview IX: Economic Report on Africa 2007
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| Policies to increase diversification |
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Overview VIII: Economic Report on Africa 2007
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| Evidence on the determinants and stages of diversification |
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Overview VII: Economic Report on Africa 2007
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| Diversification as a key pillar in Africa’s
development efforts |
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Overview VI: Economic Report on Africa 2007
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| Developments in trade negotiations |
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Overview VI: Economic Report on Africa 2007
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| Developments in trade negotiations |
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DIVERSIFICATION - HOW TO GET THE BENEFITS
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| Quite simply, it is about not putting all your eggs in one basket. There are many places to invest your money from low return, low risk investments such as cash and fixed interest investments to growth assets such as property and shares, both domestic shares and international. |
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CASH FLOW – What is That?
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| I am sure you have heard the term “Cash is King”. This is true. Those with cash have stronger buying and/or borrowing power than those without it. With today’s lagging economy, many businesses are experiencing negative cash flow. The business owner who has yet to get up close and personal with their cash flow issues will see their doors close sooner than later. |
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Other diversification Related Articles
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4.0 Diversification trends in Africa: Economic Report on Africa 2007
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| The diversification of African economies is one way through which the recent economic
growth achievements could be sustained. Africa’s economic transformation
can be achieved through both horizontal and vertical diversification. In addition,
such diversification will help to build competitive economies that can productively
be integrated into the global economy. Diversification is therefore a pre-condition if
Africa is to register accelerated development. The scaling-up of current real growth
to desired levels and in a broad manner can also be sustained if there is deepening in
the diversification of African economies. |
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4.1 Diversification trends at the regional level: Economic Report on Africa 2007
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| Figure 4.1 shows three different measures of diversification for African economies as
a whole (see Ben Hammouda et al. (2006a) for detailed definition of the indices of diversification). Three concise comments on the general trend of Africa’s diversification
experience can be made. |
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4.2 Diversification regimes in Africa: Economic Report on Africa 2007
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| Analysing the various diversification indices and the structure of the top ten export
commodities for selected countries over the last two decades and a half provides
some useful insights which can be used to define diversification regimes that characterize
Africa. Five diversification regimes can be identified from Africa’s experience
(see Ben Hammouda et al. 2006b). These regimes should not be viewed as steps
or as a continuum that a country must follow as it moves from a concentrated to
a diversified economy. Rather, the regimes are a result of the policy actions that a
country has set in place over a given period of time. The particular regime that a
country falls into is likely to be the result of a mix among the various diversification
determinants. |
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5.1 Determinants of diversification in Africa: Economic Report on Africa 2007
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| Diversification and policy variables constitute a two-way process in that diversification
not only influences policy outcomes, but is itself influenced by policy variables.
This proposition naturally leads to the search for those economic and non-economic
policy actions that are likely to affect the level and rate of diversification in a country.
What evidence is there that links economic and non-economic variables with
national capacity to diversify? |
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5.1 Investment is vital for an economy to diversify: Economic Report on Africa 2007
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| The inverse relationship between investment and the diversification index shown in
table A5.1 indicates that as the level of investments increases, there is a tendency for
economies to become more diversified. The smaller the diversification index gets, the
more diversified an economy becomes, and vice-versa for specialization. Unless a
country commits a sufficient portion of its national income to building capital stock,
it is unlikely to be able to diversify. Investment as measured by gross fixed capital
formation turns out to be a key determinant to Africa’s diversification results. |
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5.1 Fiscal space is critical for diversification: Economic Report on Africa 2007
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| The positive but insignificant result for the impact of fiscal balance on diversification
shows that macro stability plays a role for the success of diversification efforts. At the
same time, a proactive fiscal policy, especially in terms of promoting public investment,
can support efforts towards diversification. |
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5.1 The results vary by diversification regime: Economic Report on Africa 2007
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| At this point, it is worthwhile to recall the five diversification regimes: those countries
with little diversification; countries that started but got stuck in the diversification
process; those with deepened diversification; backsliders in diversification; and
the conflict and post-conflict countries. This report suggests that belonging to a
particular regime has more to do with policy and institutional factors at the country
level. Consequently, there are different determinants when the discussion is brought
to the country level (see table A5.2 for correlation results). |
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5.2 Diversification-deepening policies raise growth and TFP: Economic Report on Africa 2007
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| What then do these results imply? They mean that pursuing diversification-deepening
policies could help accelerate growth. Important policy implications of this link
arise with respect to the determinants of diversification that were discussed earlier in the chapter. |
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6.3 Financial sector links between investment and diversification: Economic Report on Africa 2007
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| With regard to financial sector policies, the starting point is the clear link between
investment and diversification. The contribution of private investment to desirable
diversification outcomes cannot be gainsaid. |
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6.5 Financing research to increase TFP: Economic Report on Africa 2007
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| The other major area in which new economic policies for diversification are required
is in research. The majority of African countries, since the demise of diversification
gain resorted to relying on factor accumulation as the main source of economic
growth. |
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