工商管理专业MBALectureLecture06.pptVIP

Dr Ita ODonovan Beechgrove Associates Corporate Level Strategy Dr Ita O’Donovan Lecture Six Key Considerations We are looking at the issue of corporate strategy from the perspective of what is the multi-business scope of the organisation. What is the optimal number of businesses for the firm Should we stay in this business How should our businesses be managed How is the corporation going to operate as a whole Dr Ita ODonovan Beechgrove Associates * Dr Ita ODonovan Beechgrove Associates * The sources of superior profitability RATE OF RETURN ABOVE THE COST OF CAPITAL How do we make Money? INDUSTRY ATTRACTIVENESS Which industries should we be in? CORPORATE STRATEGY COMPETITIVE ADVANTAGE How should we compete? BUSINESS STRATEGY Strategies Diversification two broad types: Related diversification is development beyond the present product and market, but still within the broad confines of the ‘industry’. For Example Unilever is a diversified corporation, but virtually all its interests are in the consumer goods industry. (a) Backward integration refers to inputs into the current business further back in the value system e.g. Raw materials, machinery, labour (b) Forward integration refers to activities which are concerned with the company’s outputs e.g. Transport, distribution, repairs, and servicing. These are further forward in the value system (c) Horizontal integration refers to activities which are competitive with or directly complementary to a company’s present activities Unrelated diversification refers to activity development beyond the present industry into products/markets, which at face value, may bear no clear relationship with present products/markets. Dr Ita ODonovan Beechgrove Associates * Related developments; related and unrelated diversification Dr Ita ODonovan Beechgrove Associates * Some Reasons for related Diversification Possible advantages Examples /Comments 1. Control of supplies Quantity Quality Price Tea Processors own pla