tailieunhanh - Lecture Crafting and executing strategy: The quest for competitive advantage - Concepts and cases (18/e) - 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,. | CHAPTER 8 CORPORATE STRATEGY: Diversification and the Multibusiness Company Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Crafting a Diversified Firm’s Overall Or Corporate Strategy Step 1 Picking new industries to enter and deciding on the best mode of entry. Step 2 Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage. Step 3 Establishing investment priorities and steering corporate resources into the most attractive business units. Step 4 Initiating actions to boost the combined performance of the cooperation’s collection of businesses. BUILDING SHAREHOLDER VALUE: THE ULTIMATE JUSTIFICATION FOR DIVERSIFYING The industry attractiveness test The cost-of-entry test The better-off test Testing Whether a Diversification Move Will Add Long-Term Value for Shareholders Better Performance through Synergy Evaluating the Potential for Synergy through Diversification Firm A purchases Firm B in another industry. A and B’s profits are no greater than what each firm could have earned on its own. Firm A purchases Firm C in another industry. A and C’s profits are greater than what each firm could have earned on its own. No Synergy (1+1=2) Synergy (1+1=3) STRATEGIES FOR ENTERING NEW BUSINESSES Acquisition Internal new venture (start-up) Joint venture Diversifying into New Businesses When to Engage in Internal Development Availability of in-house skills and resources Ample time to develop and launch business Cost of acquisition is higher than internal entry Added capacity will not affect supply and demand balance Low resistance of incumbent firms to market entry No head-to-head competition in targeted industry Factors Favoring Internal Development When to Engage in a Joint Venture Evaluating the Potential for a Joint Venture Is the opportunity too complex, uneconomical, or risky for one firm to pursue alone? Does the opportunity require a broader range of competencies | CHAPTER 8 CORPORATE STRATEGY: Diversification and the Multibusiness Company Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Crafting a Diversified Firm’s Overall Or Corporate Strategy Step 1 Picking new industries to enter and deciding on the best mode of entry. Step 2 Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage. Step 3 Establishing investment priorities and steering corporate resources into the most attractive business units. Step 4 Initiating actions to boost the combined performance of the cooperation’s collection of businesses. BUILDING SHAREHOLDER VALUE: THE ULTIMATE JUSTIFICATION FOR DIVERSIFYING The industry attractiveness test The cost-of-entry test The better-off test Testing Whether a Diversification Move Will Add Long-Term Value for Shareholders Better Performance through Synergy Evaluating the Potential for Synergy through Diversification Firm A purchases

• Kế hoạch 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