Ch06 Lecture Slides 2009

Ch06 Lecture Slides 2009 - KnowledgeObjectives Corporate...

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16–1 Knowledge Objectives Corporate Strategy Issues: Ø What businesses should the corporation be in? Ø How should resources be allocated among the business units? Ø What geographic markets should the corporation be in? Ø How should the corporation enter new lines of business? Ø Why do managers like diversification?
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26–2 Levels and Types of Diversification SOURCE: Adapted from R. P. Rumelt, 1974, Strategy, Structure and Economic Performance, Boston: Harvard Business School. Figure 6.1
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36–3 Why do firms implement related  diversification strategies? To gain economies of scope Ø By sharing activities (operational relatedness) Ø By transferring competencies (corporate relatedness) To gain market power Ø By blocking competitors through multipoint competition Ø By vertical integration
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46–4 Why do firms follow a vertical integration 
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