Description
I need 3-5 pages completely original work, on the below assignment:
HowRu, a private card business and its subsidiary, have a 14% share of the greeting card market. The card business is subject to seasonal cycles, with sales being highest during the holiday season. For this assignment, please complete the following:
- What steps can this company take to diversify its portfolio?
- Define diversification and its necessity in risk management.
- Discuss at least 5 steps to diversify the card business.
- Please give at least 6 suggestions of how and where funds can be allocated for new investments.

Explanation & Answer

Attached.
Running Head: COMPANY PORTFOLIO DIVERSIFICATION AND RISK MANAGEMENT 1
Company Portfolio Diversification and Risk Management
Case Study: HowRu Card Company
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COMPANY PORTFOLIO DIVERSIFICATION AND RISK MANAGEMENT
2
It is a well-known fact that the business for card companies increases when the holiday
seasons come around. From Halloween to Christmas, card deals increase in number as clients
hurry to get the ideal card to their loved ones. HowRu is a private card business which has an
auxiliary and holds a 14% share of the holiday card industry. A portfolio is utilized by numerous
associations as a way to diminish the association risk (Stulz, 2003). It is a method of putting
resources into various diverse sources as opposed to putting resources into a solitary venture.
This paper will endeavor to distinguish ways that HowRu can enhance its portfolio and diminish
its risks.
1. What steps can this company take to diversify its portfolio?
The organization can enhance naturally by making new businesses in house or by getting
contenders or organizations in the new business. On the off chance that the organization chooses
to expand organically in house, it should employ an administration group and specialists that
have the experience to handle the expansion (Hoffmann, 2005).
2. Define diversification and its necessity in risk management
Diversification is a corporate methodology that an organization uses to enter an industry
or market that is unique in relation to the center business. It is the way of putting resources into a
few unique sorts of individual assets or securities keeping in mind the end goal to lessen risk
(Stulz, 2003). Basically, when an organization utilizes diversity in investing and dangers, it
diminishes the chance of disappointment and expands the potential for gaining. More or less,
diversity is about not putting all the investments tied up in ...
