TAILIEUCHUNG - Lecture Essentials of strategic management: The quest for competitive advantage (4e) - Chapter 8

Chapter 8 - Corporate strategy: Diversification and the multibusiness company. After studying this chapter, you should be able to: Understand when and how business diversification can enhance shareholder value, gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage, become aware of the merits and risks of corporate strategies keyed to unrelated diversification,. | Student Version 1 Crafting a Diversified Company’s Overall Corporate Strategy Picking new industries to enter and deciding on the means of entry Pursuing opportunities to leverage cross-business value chain relationships into competitive advantage Establishing investment priorities and steering corporate resources into the most attractive business units Initiating actions to boost the combined performance of the corporation’s collection of businesses 2 Strategic Options for Diversified Corporations Broadly restructuring the business lineup with multiple divestitures and/or acquisitions Sticking with the existing business lineup and pursuing opportunities presented by these businesses Retrenching to a narrower scope of diversification by divesting poorly performing businesses Broadening the scope of diversification by entering additional industries Strategic Options When Business Diversification Becomes a Consideration Diversification is called for when: There are diminishing growth prospects in the present business An expansion opportunity exists in an industry whose technologies and products complement the present business Existing competencies and capabilities can be leveraged by expanding into an industry that requires similar resource strengths Costs can be reduced by diversifying into closely related businesses A powerful brand name can be transferred to the products of other businesses 4 Building Shareholder Value: The Ultimate Justification for Business Diversification Industry attractiveness test Better-off test Tests for building shareholder value through diversification Cost-of-entry test 5 Approaches to Diversifying the Business Lineup Diversification by acquisition of an existing business Using joint ventures to achieve diversification Options for entering new industries and lines of business Entering a new line of business through internal development Diversification by Acquisition of an Existing Business Quick and effective way to .

• Quản trị kinh doanh
• Crafting strategy
• Executing the strategy
• Company’s strategy
• Competitive advantage
• Lecture Crafting and executing strategy
• Corporate strategy
• Strategy implementation process
• Good strategy execution
• Distinctive strategy
• Strategic vision
• Company’s external environment
• Competitive position
• Competitive strategies