Chapter 7 Attached Source
How does horizontal growth differ from vertical growth as a corporate strategy? From concentric diversification?
120 words or more
No Ai.
Due: October 11
STRATEGIC MANAGEMENT
Chapter 7: corporate strategy
Directional strategy
Growth strategies expand the company’s activities.
Stability strategies make no change to the company’s current activities.
Retrenchment strategies reduce the company’s level of activities.
Portfolio analysis
Question marks (sometimes called “problem children” or “wildcats”) are new products with the potential for success, but they need a lot of cash for development
Stars are market leaders that are typically at the peak of their product life cycle and are able to generate enough cash to maintain their high share of the market and usually contribute to the company’s profits.
Cash cows typically bring in far more money than is needed to maintain their market share. In this declining stage of their life cycle
Dogs have low market share and do not have the potential (because they are in an unattractive industry) to bring in much cash.
Parenting strategy
Corporate parenting, views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.
1. Examine each business unit (or target firm in the case of acquisition) in terms of its strategic factors
2. Examine each business unit (or target firm) in terms of areas in which performance can be improve
3. Analyze how well the parent corporation fits with the business unit (or target firm
