carpenter_ppt_ch07_ed2

carpenter_ppt_ch07_ed2 - Chapter 7 Developing Corporate...

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Chapter 7 Developing Corporate Strategy
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2 OBJECTIVES Define corporate strategy 1 Understand the roles of economies of scope and revenue-enhancement synergy in corporate strategy 2 Explain the different forms of diversification 3 Understand when it makes sense for a firm to own a particular business 4 Explain the corporate strategy implications of the stable and dynamic perspectives 5 6 Explain the corporate strategy implications of the stable and dynamic perspectives
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3 DIVERSIFICATION Diversification process Types of businesses Heavy reliance on acquisition Many seemingly un- related businesses Primarily organic Many businesses clustered in a few related industries Company Product extensions/ new product lines Few related product lines
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THREE CORPORATE STRATEGY DECISIONS THAT ARISE WHEN MAKING ENTRY/EXIT DECISIONS In which business arenas should a com- pany compete? Which vehicles should it use to enter/exit a business? What underlining economic logic makes it
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carpenter_ppt_ch07_ed2 - Chapter 7 Developing Corporate...

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