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Corporate Strategy, G5 (DSEAS3 YOGA, DFLL3 Becky, IBS3 James, IBS3 Kevin,…

- - - - horizontal integration
        
        Procurement
        
        human resources
        
        accounting and finance
        
        information systems
        
        research and development
      - veritcal integration
        
        supplier logistics
        
        intermediate production
        
        final production
        
        distribution logistics
        
        marketing & sales
        
        customer service
        
        outsource of vertically integrated?
        
        don't have quality of needed resources
        
        stop outsourcing a profitable activity
        
        aggregate demamnd and build scale
        
        make sense for companies to integrate
        
        reduce the extent of competition in online educational space
        
        better control over the prices when it wants to vharge on such platform
  - - - whether the business is attractive
      - significant sustanable competitive advantage
  - - - Lemon car problem
    - - "Abuse" of benefits
    - - Opportunism or self-interest
  - - - Leads to underperformance
- - - - What range of products or services ?
        
        GE or General Electrichas a new renewable energy business .
    - - Where in the world to compete ?
    - - What stage of value chain ?
        
        PepsiCo acquired most of its bottlers .
- - - - Diversification Discount
        
        Gecko's Strategies
        
        Fired the unvalued staffs
        
        LBO
        
        The acquiring company uses current and future cash flow as a guarantee to borrow funds for the purchase of other businesses by raising debt.
        
        Acquiring and Break up
      - Diversification Premium
        
        Jack Welch
      - Analysis
        
        Comparative Organizational Analysis
        
        Willamsonian Analysis
        
        Considerations
        
        De-linked objectives
        
        Market aragement
        
        Mark Moran
        
        John Deere
        
        Alliance partner
        
        1 more item...
        
        Mining business
        
        Out of cyclical market
        
        1 more item...
        
        Transaction Cost Theory,1975
        
        The optimization of diversification
        
        The key tests of diversification
        
        The ownership test
        
        The better-off test
        
        Relatedness
        
        Firm-specific consideration
      - :star:Create New Value:star:
      - :money_mouth_face:Increase Market Power :money_mouth_face:
    - - Business strategy question
      - Exit current business to enter the profitable one
      - Start a new business & diverse them if it is no need to be together
    - - Having a business school as part of a larger diversified university
        
        University of Illinois
        
        Advantage
        
        Opportunity to connect with faculty & college across the campus
        
        Ex. Able to minor in business in the University of Illinois
        
        The comprehensive university is good for interdisciplinary research
        
        Bigger population
        
        Can be more exposed to other fields & grounds
        
        Having strong programs outside of the College of business
        
        Disadvantage
        
        Can’t get everyone working in the same direction
        
        Ex. Engaged in other activities for the good of the campus
        
        Share the resource with other faculty
      - Key question about horizontally diversified
    - - Not the same as horizontal merger
        
        Merging the company with exact same industry
- - - - Google 、 Amazon