Chapter 8, corporate strategy Flashcards
Corporate strategy
Defines the organizations overall direction and the high-level ideas of how to move towards that direction
Which way can we go
Market penetration - More shares by entering market
Product and service development - Reaching out to the same people but with different products as well
Market development – For Max It is to try different places in Sweden, then Nordic and then the world. Try to expand the market.
Unrelated diversification – If Apple start to sell apple juice, this is diversification.
Vertical integration
Entering sectors where the organization is its own customer or supplier.
Corporate parent
Should create more value but that is not the case every time
Value destroying activities as a corporate parent
Adding management costs
Making things complex
Overlooking financial performance
International divesification strategy
Global-local dilemma - Which products and services to be standardized across national boundaries or need to be adopted to meet specific national markets requirements
Value adding activities as a corporate parent
Envisioning - Provide an overall vision or strategic intent
Facility synergies - Facilitate cooperation and sharing across business units
Coaching - Help business unit managers develop capabilities
Providing central services and resources