strategy management第八章.ppt

Using Divestitures and Acquisitions to Restructure the Business Lineup Factors Leading to Corporate Restructuring: Too many businesses in unattractive industries Too many competitively weak businesses Ongoing declines in the market shares of business units due to more market-savvy competitors Debt and interest costs that sap profitability Acquisitions that haven’t lived up to expectations Reallocation of assets to strengthen the lineup Businesses with poor resource or strategic fit Is VF’s corporate restructuring strategy narrowing or broadening its diversification base? How did restructuring ensure that VF was better prepared to weather the economic downturn than its competitors? What actions did VF take after making acquisitions to ensure the success of those acquisitions? 8–* CHAPTER 8 CORPORATE STRATEGY: Diversification and the Multibusiness Company McGraw-Hill/Irwin Copyright ?2012 The McGraw-Hill Companies, Inc. Understand when and how business diversification can enhance shareholder value. Gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. Become aware of the merits and risks of corporate strategies keyed to unrelated diversification. Gain command of the analytical tools for evaluating a firm’s diversification strategy. Understand a diversified firm’s four main corporate strategy options for solidifying its diversification strategy and improving company performance. WHEN TO DIVERSIFY A firm should consider diversifying when: It can expand into businesses whose technologies and products complement its present business. Its resources and capabilities can be used as valuable competitive assets in other businesses. Costs can be reduced by cross-business sharing or transfer of resources and capabilities. Transferring a strong brand name to the products of other businesses helps drive up sales and profits of those businesses. Testing Whether Diversification Will Add