BS-06

    Master this deck with 24 terms through effective study methods.

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    Created by @akshayy06

    What defines corporate-level strategy?

    It focuses on the overall scope and direction of a company.

    How does related diversification differ from unrelated diversification?

    Related diversification leverages synergies between businesses.

    What is the effect of product and geographical diversity on performance?

    It can enhance competitiveness and reduce risk.

    What are the attractions of international markets?

    They offer growth opportunities and access to new customers.

    What is a multidomestic strategy?

    It tailors products to local markets for better relevance.

    What is a global strategy?

    It standardizes products across markets to achieve economies of scale.

    What role does corporate parenting play?

    It involves guiding and supporting business units for value creation.

    What are scope decisions in corporate strategy?

    They determine the range of businesses a company will operate.

    What is portfolio management?

    It involves balancing and optimizing a company's business units.

    What happens if a company pursues excessive diversification?

    It may lead to inefficiencies and diluted focus.

    What is diversification?

    A strategy to enter new markets and offer new products or services.

    How does diversification create value?

    By applying existing resources to new markets or products.

    What are economies of scope?

    Cost advantages from producing multiple products together.

    What is synergy in diversification?

    Enhanced value from combining resources across different markets.

    What does dominant logic refer to?

    The rationale that guides a company's strategy across diverse products.

    How can diversification lead to increased market power?

    By offering a wider range of products or services.

    What is cross-subsidy?

    Using profits from one area to support another less profitable area.

    What is the implication of a possible monopoly in the long run?

    Reduced competition and increased market control.

    Why might a company diversify in response to environmental change?

    To adapt and maintain its competitive position.

    What does spreading risk across businesses achieve?

    Reduces the impact of poor performance in any single area.

    Why is diversification important for private businesses?

    To meet the growth expectations of stakeholders.

    What is vertical integration?

    Expanding into input or output activities within the supply chain.

    What is horizontal integration?

    Expanding into complementary activities to enhance existing operations.

    How does related diversification differ from unrelated diversification?

    It stays within the company's existing capabilities and value network.