Ch8LearnObj - In what areas can strategic fits be captured?...

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MGMT4890 Chapter 8 – Diversification: Strategies for Managing a Group of Businesses Learning Objectives: What are the differences between corporate level and business level strategy? What is corporate level strategy? What is diversification? What are the four distinct facets of corporate level strategy? When should a firm diversify? Discuss and explain why building shareholder value is the ultimate justification for diversifying? Explain the significance of the three tests for judging a diversification move. Describe in some detail the three basic strategies that organizations can use to enter new businesses. Explain in some detail what related diversification is. Why do firms pursue related diversification? How can related diversification build shareholder value? What are strategic fits, economies of scope, and synergies and why are they important in the pursuit of related diversification?
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Unformatted text preview: In what areas can strategic fits be captured? How can strategic fits and economies of scope lead to a competitive advantage? What is unrelated diversification? Why do firms pursue unrelated diversification? What are the pros and cons or what is the appeal of unrelated diversification? How can unrelated diversification build shareholder value? Explain the 2 major drawbacks of pursuing unrelated diversification. Identify and briefly describe the six steps associated with evaluating the strategy of a diversified company. Identify and briefly describe the strategic options for companies that are already diversified (i.e., broadening business base, retrenchment and divestiture, restructuring and turnaround, and multinational diversification strategies). What are the distinguishing characteristics of a multinational diversification strategy?...
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