+ | - | reset
Diversifying
The glove manufacturing business is expected to remain very profitable with the earnings before interest, tax, depreciation and amortisation margin remaining at elevated levels, although the peak of 60%-70% may not be repeated.

At the time of an initial public offering (IPO), a company that comes to market is judged by its business prospects, the dynamics of the sector that it is exposed to, as well as factors that could determine its success or failure.

In today’s competitive business world, some factors are outside the control of a company, which could make a company irrelevant, and this of course are factors like the pandemic situation that we are facing now, technological changes, economic shocks, financial turmoil, or even catastrophic events like an earthquake or tsunami.

There are also cases where companies failed due to their mismanagement and this includes lack of business acumen, the inability to respond to market changes, or even a potential case of a good business plan but poorly executed or a plan that was too ambitious to begin with.

While these factors, both internal or external, could be reasons for the failure of a business, there are also cases whereby a company is able to ride the changing business environment by diversifying away from its focus area, both either vertically or horizontally or even by venturing into a new business altogether.

 

 

The article was first published here.

Photo by Christopher Burns on Unsplash.

Rate this article

/ 5.

Is this article good for you?
christopher burns 8KfCR12oeUM unsplash scaled
5.0
7 Mins  Read

Diversifying to Remain Relevant

24 August 2021

READ MORE
Share
jacob tabo miV3P vvBog unsplash scaled
5.0
7 Mins  Read

5 ESG Concerns For Corporate Boards With A Social Conscience

20 April 2021

READ MORE
Share
nathy dog z1uDmJx3ZEQ unsplash scaled
5.0
4 Mins  Read

What Boards Can Do To Enhance Oversight In Times Of Uncertainty

14 April 2021

READ MORE
Share
gaurav pikale qs0fd8XPU unsplash scaled
5.0
16 Mins  Read

Enterprise Resillience: Nine Areas of Focus to Reframe Your Future

17 March 2021

READ MORE
Share
yann maignan rRiAzFkJPMo unsplash scaled
5.0
5 Mins  Read

The GLIC Conundrum – A 4Ds Guide

17 February 2021

READ MORE
Share
steven kamenar MMJx78V7xS8 unsplash scaled
5.0
7 Mins  Read

Why decarbonization should top Asia-Pacific board agendas

19 January 2021

READ MORE
Share

Survey

ICDM
Homepage