TAILIEUCHUNG - Corporate Strategy: Leveraging Resources to Extend Advantage

Exxon Corporation CASE 2 Kao Corporation of Japan CASE 3 AT&T: Shifting Corporate Strategies in the 1990s Introduction The Concept of Resources in Corporate Strategy Alternate Routes of Corporate Strategy New Stages New Products and Industries Broad Types of Corporate Strategies Vertical Integration Related Diversification Building Synergy in Related Diversification Unrelated Diversification Corporate Strategies Compared More Attractive Terrain Growth Profitability Stability Access to Resources Physical Assets Technologies Expertise Sharing Activities Costs of Diversification Cost of Ignorance Cost of Neglect Cost of Cooperation Maximizing Benefits, Minimizing Costs Achieving Powerful Diversification Benefits Limiting Diversification Costs Alternatives to Diversification: Corporate Restructurings Selective Focus. | strategie management Corporate Strategy Leveraging Resources to Extend Advantage CHAPTER OUTLINE CASE 1 Exxon Corporation CASE 2 Kao Corporation of Japan CASE 3 AT T Shifting Corporate Strategies in the 1990s Introduction The Concept of Resources in Corporate Strategy Alternate Routes of Corporate Strategy New Stages New Products and Industries Broad Types of Corporate Strategies Vertical Integration Related Diversification Building Synergy in Related Diversification Unrelated Diversification Corporate Strategies Compared More Attractive Terrain Growth Profitability Stability Access to Resources Physical Assets Technologies Expertise Sharing Activities Costs of Diversification Cost of Ignorance Cost of Neglect Cost of Cooperation Maximizing Benefits Minimizing Costs Achieving Powerful Diversification Benefits Limiting Diversification Costs Alternatives to Diversification Corporate Restructurings Selective Focus Divestitures and Spin-offs Corporate Application to Exxon Kao and AT T Summary Exercises and Discussion Questions WHAT YOU WILL LEARN The concept of corporate strategy The notion of a resource-based view of corporate strategy How effective corporate strategy can be used to extend and leverage a firm s distinctive competence The broad types of corporate strategy including vertical integration related diversification and unrelated diversification Economic forces that motivate the pursuit of different corporate strategies How to balance the benefits and costs of diversification Benefits of sharing and leveraging resources among businesses or activities Costs accompanying diversification and the limitations of sharing Why companies undertake corporate restructuring How spin-offs and divestitures represent a form of restructuring designed to regain focus 165 166 PART 2 Extending Competitive Advantage Case 1 Exxon Corporation1 As the world s largest petroleum refiner Exxon Corporation currently has numerous oil-producing properties and interests around the world.

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