Chapter 8, corporate strategy Flashcards

1
Q

Corporate strategy

A

Defines the organizations overall direction and the high-level ideas of how to move towards that direction

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2
Q

Which way can we go

A

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.

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3
Q

Vertical integration

A

Entering sectors where the organization is its own customer or supplier.

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4
Q

Corporate parent

A

Should create more value but that is not the case every time

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5
Q

Value destroying activities as a corporate parent

A

Adding management costs

Making things complex

Overlooking financial performance

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6
Q

International divesification strategy

A

Global-local dilemma - Which products and services to be standardized across national boundaries or need to be adopted to meet specific national markets requirements

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7
Q

Value adding activities as a corporate parent

A

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

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