Lecture 5- Corporate strategy & diversification

Corporate ‘parent’- Head office of & its senior . In small- or medium-sized company (SME), it may simply be one . However, in multi-business organisation, this is often separate from business units themselves

One key aspect of corporate parenting are of corporate parent for creation. Another key aspect is corporate parent’s as bridge between & -level strategies

According to Henry (2018) one area in which corporate parents business units is . This concerns parent company’s impact upon & of each business, parent owns

According to Henry (2018) another area in which corporate parents business units is . This occurs when parent seeks to create by enhancing

According to Henry (2018) third area in which corporate parents business units is . This is when parent can provide leadership & services for businesses

According to Henry (2018) fourth area in which corporate parents business units is . This involves parent creating by changing of its portfolio of businesses

Ansoff's growth matrix- Framework helps to what best approach for is & relevant for

One quadrant of Ansoff's growth matrix is . This involves increasing of products or markets served by an . One type is which involves into products or services with to existing business. Another type is conglomerate which involves into products or services with no to existing businesses

Another quadrant of Ansoff's growth matrix is . This implies increasing of current markets with product range. This strategy builds on established capabilities‘, means organisation’s scope is , leads to market share & power in relation to buyers & suppliers & provides economies of scale & experience curve benefits

Third quadrant of Ansoff's growth matrix is . This is where an organisation delivers or products (or services) to existing markets. This strategy involves varying degrees of related (in terms of products), can be & high , may require new capabilities & typically involves project management

Fourth quadrant of Ansoff's growth matrix is . This involves offering products to markets. This strategy involves development (e.g. packaging or service), users (e.g. extending use of aluminium to automobile industry), new (e.g. extending market to new areas- international markets), meeting critical factors of market & new capabilities (e.g. in marketing).

Conglomerate (or unrelated) diversification takes organisation beyond both its existing & its existing & completely increases organisation’s . Potential benefits to an acquired business is that it gains from of group & potentially lowers costs. Potential costs arise because there are no obvious ways to generate value

One driver for diversification is exploiting . Efficiency through applying organisation’s resources or competences to markets or services

Another driver for diversification is stretching management . ‘Dominant ’ i.e. applying these across portfolio of businesses

Third driver for diversification is exploiting superior

Fourth driver for diversification is increasing power via mutual or cross

Fifth driver for diversification is . This refers to gained where activities or assets each other so that their effect is greater than of parts

Sixth possible driver for diversification is (negative ). This involves responding to market , spreading & ambition

One type of integration is . This means entering where organisation is its supplier or customer

Another type of integration is . This refers to development into concerned with into company’s current business

Third type of integration is . This refers to development into concerned with into company’s current business

Fourth type of integration is . This refers to firm which provider of products or services