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Corporate Strategies - Coggle Diagram

- - - - • Step 1: Assess long-term attractiveness of each industry firm is in
      - • Step 2: Assess competitive strength of firm’s business units
      - • Step 3: Check competitive advantage potential of crossbusiness strategic fits among business units
      - • Step 4: Check whether firm’s resources fit requirements of present businesses
      - • Step 5: Rank performance prospects of businesses and determine priority for resource allocation
      - • Step 6: Craft new strategic moves to improve overall company performance
  - - - • Growth
      - • Risk spreading
      - • Value creation
        
        Exploiting economies of scope
        
        Sharing Activities
        
        • Spreading Core Competencies
        
        Operating an efficient internal capability market
        
        Operating an internal labour market
        
        Tax advantages
        
        When does diversification create
        value?: Porter’s “three essential tests”
        
        The attractiveness test
        
        The cost-of-entry test
        
        The better-off test
- - - - Seeking greatest value
      - Evaluating resources and capabilities
      - Environmental threats and ongoing tasks
      - Nonstrategic team resources
      - Firm’s knowledge base
- - - - • Vertically integrate
      - • Diversify
      - • Form strategic alliances
      - • Implement mergers and acquisitions
    - - Increase the size of potential markets
      - Optimize the physical location for every
        activity in its value chain
      - Attain economies of scale
      - Extend the life cycle of a product
  - - - Customer needs and interests worldwide are becoming more homogeneous
      - People are willing to sacrifice product preferences for lower prices at high quality
      - Economies of scale in production and marketing can be achieved through supplying global markets