武汉理工大博导秦远建先生战略管理课件.PPT

Principles Corporate strategy is the way a company creates value through the configuration and coordination of its multi-market activities . Value creation: It is the ultimate purpose. Configuration: Multi-market scope of the corporation (including its product, geographic and vertical boundaries) Coordination: How the firm manages the activities and businesses that lie within the hierarchy. What is corporate strategy？ * Map of Levels of Diversification Low Levels of Diversification Single business: Dominant business: Moderate to High Levels of Diversification Related constrained: Related linked: Very High Levels of Diversification Unrelated: A A B A B C A B C A B C * Levels of Diversification Low Levels of Diversification Single business: Dominant business: More than 95% of revenues comes from a single business Between 70% and 95% of revenues comes from a single business Moderate to High Levels of Diversification Related constrained: Less than 70% of revenues comes from the dominant business, And all business share product, technological, and distribution linkages. Less than 70% of revenues comes from the dominant business, And there are only limited links between businesses. Related linked: (Mixed related and unrelated) Very High Levels of Diversification Unrelated: Less than 70% of revenues comes from the dominant business, And there are no links between businesses. * The Curvilinear Relationship Between Diversification and Performance Dominant Related Unrelated Business Constrained Business Performance Level of Diversification * Reasons for DiversificationMotives, Incentives, and Resources for Diversification Motives to Enhance Strategic Competitiveness Economies of scope (related diversification) Sharing activities Transferring core competencies Market power (related diversification0 Blocking competitors through multipoint competition Vertical int