CORPORATE STRATEGY (DIVERSIFICATION)

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CORPORATE STRATEGY(DIVERSIFICATION)

• RELATED STRATEGIC FIT, THEME
• UNRELATED (What is theme?)
• VERTICAL
• HORIZONTAL

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DIVERSIFICATION Motives to Strengthen
Competitiveness

• SHARING ACTIVITIES
• TRANSFERING CORE COMPETENCIES
• BLOCKING COMPETITORS
• VERTICAL INTEGRATION
• EFFICIENT INTERNAL USE OF CAPITAL
• BUSINESS RESTRUCTURING
• FINANCIAL
• ORG. DESIGN

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DIVERSIFICATION Neutral Effects?

• ANTI-TRUST REGULATION
• TAX LAWS
• LOW PERFORMANCE
• UNCERTAIN FUTURE CASH FLOW
• RISK REDUCTION
• TANGIBLE, INTANGIBLE RESOURCES

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DIVERSIFICATION Managerial Motives?

• DIVERSIFY MANAGERIAL EMPLOYMENT
• INCREASING SALARY

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