TAILIEUCHUNG - Chapter 7 - Developing Corporate Strategy

Understand the roles of economies of scope and revenue-enhancement synergy in corporate strategy. Explain the different forms of diversification Understand when it makes sense for a firm to own a particular business | Chapter 7 Developing Corporate Strategy OBJECTIVES Define corporate strategy 1 Understand the roles of economies of scope and revenue-enhancement synergy in corporate strategy 2 Explain the different forms of diversification 3 Understand when it makes sense for a firm to own a particular business 4 Explain the corporate strategy implications of the stable and dynamic perspectives 5 6 Explain the corporate strategy implications of the stable and dynamic perspectives DIVERSIFICATION Diversification process Types of businesses Heavy reliance on acquisition Many seemingly un-related businesses Primarily organic Many businesses clustered in a few related industries Company Product extensions/ new product lines Few related product lines MITY THREE CORPORATE STRATEGY DECISIONS THAT ARISE WHEN MAKING ENTRY/EXIT DECISIONS In which business arenas should a com- pany compete? Which vehicles should it use to enter/exit a business? What underlining economic logic makes it sensible to .

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• strategy management
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