Diversification and Strategic Management

The article is about the real options theory in strategic management. The article also through light on the importance and significance of growth strategies in the strategic management and overall impact on organizational performance outcomes. Presenting the example of an in-country growth and international growth, researchers claimed that adverse movement and continuous focus on the growth strategy results in the decrease of risk factor. According to the information presented in the article firms ensure management of a portfolio of strategies and options of operations in order to secure a better position in the competitive market. Furthermore, researchers also conclude that firms sequentially exit or get entrance in the industries with the corporate diversification strategy. Companies sometimes adopt this diversification strategy in order to expand their targeted market through geographical expansion. Although, firms adopt a diversification strategy to take advantage in the market. The article also presents that firms adopt an acquisition strategy to acquire foreign subsidiary (TRIGEORGIS & REUER, 2017).