sm-cls-lec ture - Fit between a parent and its businesses is a two-edged sword a good fit can create value a bad one can destroy it Andrew Campbell

sm-cls-lec ture - Fit between a parent and its businesses...

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“Fit between a parent and its businesses is a two-edged sword: a good fit can create value; a bad one can destroy it.” Andrew Campbell, Michael Gould, and Marcus Alexander “Quote”
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Corporate Level Strategy Formulation Responsibilities Direction Setting Establishment and communication of organizational mission, vision, enterprise strategy and long-term goal Development of Corporate-level Strategy Broad approach to corporate-level strategy— growth, stability, retrenchment or combination. Selection of resources and capabilities in which to develop corporate-level distinctive competencies
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Selection of Businesses and Portfolio Management Buy and sell businesses Allocation of resources to business units for capital equipment, R&D, etc. Selection of Tactics for Diversification and Growth Choice among methods of diversification —internal venturing, acquisitions, joint ventures Corporate Level Strategy Formulation Responsibilities
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CS CONCERNED WITH CHOICE OF Businesses, Products And markets
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Advantages of CS – Bridge the gap – Exploit the opportunities – Develop core competencies
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GRAND STRATEGIC ALTERNATIVES GROWTH/ EXPANSION STABILITY OR CONSOLODATION RETRENCHMENT COMBINATION
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GROWTH / EXPANSION I ntensification / Concentration Market Penetration Market Development Product Development Innovation
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GROWTH / EXPANSION DIVERSIFICATION HORIZONTAL CONCENTRIC CONGLOMERATE VERTICAL (INTEGRATION) FORWARD BACKWARD
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STABILITY / CONSOLODATION INCREMENTAL GROWTH PROFIT SUSTAINABLE GROWTH PAUSE STRATERGY
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RETRENCHMENT DIVESTMENT TURNAROUND LIQUIDATION BANKRUPTCY
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COMBINATION JOINT VENTURES STRATEGIC ALLIANCES CONSORTIA
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Growth / Expansion When to Adopt Growth be manageable To take into account environmental demands Natural choice when opportunities exists
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  • Spring '11
  • SobiaMahmood
  • Management

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