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17 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Corporate-Level Strategy |
specifies actions a firm takes to gain competitive advantage by selecting and managing a group of different businesses competing in different product markets |
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Economies of Scope |
Cost savings that the firm creates by successfully sharing some of its resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses |
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Corporate-level Core Competencies |
Complex sets of resources and capabilities that link different businesses primarily through managerial and technological knowledge, experience, and expertise |
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Market Power |
Exists when a firm is able to sell its product above the existing competitive level or to reduce the cost of its primary and support activities below the competitive level, or both |
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Multipoint Competition |
Exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets |
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Vertical Intergration |
Exists when a company produces its own inputs or owns its own source of output distribution |
Backward/Forward intergration |
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Financial Economies |
Cost savings realized through improved allocations of financial resources based on investments inside or outside the firm |
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Synergy
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Exists when the value created by business units working together exceeds the value that those same units create working independently
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Levels of diversifications
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1. Low
2. Moderate to high 3. Very high |
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Types of low level diversification
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1. Single Business
2. Dominant Business |
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Types of moderate to high diversification
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1. Related constrained
2. Related linked ( mixed related and unrelated ) |
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Types of very high diversification
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1. Unrelated
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Single business diversification
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95% or more of revenue comes from a single business
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Dominant Business
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Between 70% and 95% of revenue comes from a single business
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Related Constrained diversification
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less than 70% of revenue comes from the dominant business and all businesses share product, technological, AND distribution linkages
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Related Linked diversification
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less than 70% of revenue comes from the dominant businesses, and there are only limited links between businesses
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Unrelated diversification
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less than 70% of revenue comes from the dominant business , and there are no common links between businesses
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