Here, we address pooled negotiating power and vertical integration.

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Overview
Whereas business-level strategy (Chapter 5) deals with the question of how to compete in a given industry, corporate level strategy addresses two related issues. These are: (1) what businesses should we compete in, and (2) how can these businesses be managed in a way to create “synergy,” that is, more value by working together than if they were free-standing units. This chapter is divided into six major sections:

We begin by posing the question of why some corporate-level strategic efforts fail, and others succeed? We emphasize the importance of diversification activities that create shareholder value, whether through mergers and acquisitions, strategic alliances and joint ventures, or internal development.

We address how related diversification can help a firm attain economies of scope through either leveraging core competencies or sharing activities (such as production facilities or distribution facilities).

We discuss how firms can benefit from related diversification through greater market power. Here, we address pooled negotiating power and vertical integration.

The fourth section discusses how firms can benefit from unrelated diversification. There are two key means to this end: corporate parenting and restructuring, as well as portfolio management.

The fifth section focuses on the means that firms can use to achieve diversification. The means include mergers and acquisitions, strategic alliances and joint ventures, and internal development. We discuss the advantages and disadvantages associated with each of these.

We close the chapter with a section on how managerial motives can erode value creation as firms pursue diversification initiatives. These include growth for growth`s sake, egotism, and antitakeover tactics (e.g., greenmail, poison pills).
Instructions
Answer the following questions in an MLA-formatted paper worth 50 points with a minimum of 400 words. Use properly formatted references. Use internet references, books, and peer-reviewed journal articles from the TCC online library.
Use the Internet and select a company that has recently undertaken diversification into new product markets. What do you feel were some of the reasons for this diversification (e.g., leveraging core competencies, sharing infrastructures)?
What are some of the ethical issues that arise when managers act in a manner that is counter to their firm`s best interests?
What are the long-term implications for both the firms and the managers themselves?
What are the challenges that managers must overcome in making strategic alliances successful?
What are some strategic alliances with which you are familiar? Were they successful or not?
IM COMPLETELY AWARE OF THE WORD COUNT, JUST DO THE BEST WITH 300 WORDS. ALSO, NO REFERENCES PLEASE UNLESS YOU CHOOSE. THANK YOU!

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