Terms in this set (47)
Growth, Stability, Renewal Three "grand" strategies
planning, organizing, leading, 4 functions of management
controlling
end result of decisions and tradeoffs Business Model
made by management in formulating
strategy.
Also, how the firm plans on creates and
capturing value
transforming process using the internet virtual integration
or e-commerce capabilities
(avoids costly capital investment vis-a-
vis vert. integration but harder to
capture all profits)
diversification, vertical integration, 3 determinants of firm scope
geographic scope
, 1. Products Diversification; using existing 3 diversification strategies
channels to sell new products
2. Geographic Diversification: selling
existing products in new
channels/geographies
3. Both product + geography: Very risky!
(aka suicde sale)
>95% of revenues come from primary Diversification: Single Business
activity
70-95% of revenues come from primary Diversification: Dominant Business
activity
<70% of revenues come from primary Diversification: Related or Unrelated
activity
Coordination costs Types of Diversification Costs
Influence costs
administrative costs brought on by Coordination Costs
operating different businesses
Corporate executives may be misled by Influence costs
knowledgeable but biased business unit
managers
Growth, Stability, Renewal Three "grand" strategies
planning, organizing, leading, 4 functions of management
controlling
end result of decisions and tradeoffs Business Model
made by management in formulating
strategy.
Also, how the firm plans on creates and
capturing value
transforming process using the internet virtual integration
or e-commerce capabilities
(avoids costly capital investment vis-a-
vis vert. integration but harder to
capture all profits)
diversification, vertical integration, 3 determinants of firm scope
geographic scope
, 1. Products Diversification; using existing 3 diversification strategies
channels to sell new products
2. Geographic Diversification: selling
existing products in new
channels/geographies
3. Both product + geography: Very risky!
(aka suicde sale)
>95% of revenues come from primary Diversification: Single Business
activity
70-95% of revenues come from primary Diversification: Dominant Business
activity
<70% of revenues come from primary Diversification: Related or Unrelated
activity
Coordination costs Types of Diversification Costs
Influence costs
administrative costs brought on by Coordination Costs
operating different businesses
Corporate executives may be misled by Influence costs
knowledgeable but biased business unit
managers
