Please enable JavaScript.
Coggle requires JavaScript to display documents.
CORPORATE STRATEGY - Coggle Diagram
CORPORATE STRATEGY
Crafting a diversified firm's overall or corporate strategy
Step 1:
Picking new industries to enter and deciding on the best mode of entry
Step 2:
Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage
Step 3:
Establishing investment priorities and steering corporate resources into the most attractive business units
Step 4:
Initiating actions to boost the combined performance of the cooperation's collection of businesses
Step 5:
Ranking business unit performance and assigning resource allocation priorities
Step 6: Crafting new strategic moves to improve overall corporate performance
Testing whether a diversification move will add long-term value for shareholders
The industry attractiveness test
The cost-of-entry test
The better-off test
Evaluating the potential for synergy through diversification
No synergy
(1+1=2)
Synergy
(1+1=3)
Diversifying into new business
Acquisition
Internal new venture (start-up)
Join venture
Choosing the diversification path
Related businesses
Unrelated businesses
Both related and unrelated businesses
Building shareholder value via unrelated diversification
Astute corporate parenting by management
Cross-business allocation of financial resources
Acquiring and restructuring undervalued companies
The drawbacks of unrelated diversification
Pursuing an unrelated diversification strategy
Demanding managerial requirements
Monitoring and maintaining the parenting advantage
Limited competitive advantage potential
Potential lack of cross-business strategic-fit benefits
Diversified strategy
Step 1: Evaluating industry attractiveness
Step 2:Evaluating business-unit competitive strength
Step 3: