Corporate Strategy and Diversification
17 important questions on Corporate Strategy and Diversification
What is parenting advantage?
Which 2 constraints may organizations that seek for greater market penetration face?
2. Legal constraints
Despite potential for benefits from relatedness, product development can be an expensive and high-risk activity for 2 reasons, which?
2. Project management risk
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Name the 4 potentially value-creating drivers for diversification?
2. Stretching corporate management competences
3. Exploiting superior internal processes
4. Increasing market power
Explain stretching corporate management competences?
What is dominant logic?
Explain exploiting superior internal processes?
Explain increasing market power?
Name 3 potentially value-destroying diversification drivers?
2. Spreading risk across range of markets
3. Managerial ambition
What is the same in vertical integration and diversification and what is the difference?
Market reationships tend to fail in controlling subcontractor opportunism where? (3)
2. The product or service is complex and changing
3. Investments have been made in specific assets
There are 5 main types of activities by which a corporate parent can add value, which?
2. Facilitating synergies
3. Coaching
4. Providing central services and resources
5. Intervening
There are 3 broad ways in which the corporate parent can inadvertently destroy value, which?
2. Adding bureaucratic complexity
3. Obscuring financial performance
What is the role of the portfolio manager?
What are the 3 challenges when trying to achieve synergistic benefits?
2. Overcoming self-interest
3. Illusory synergies
There are 2 crucial challenges to managing a parental developer, which?
2. Crown jewel problem
What is the crown jewel problem?
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