Shared Flashcard Set

Details

MGT 499
Exam 2 - Ch. 6
10
Business
Undergraduate 4
11/06/2011

Additional Business Flashcards

 


 

Cards

Term
Diversification Strategies
Definition

The process of firms expanding their operations by entering new businesses:


acquisitions

strategic aliances

joint ventures

internal development

Term
Related Diversification
Definition

Enables a firm to benefit from horizontal relationships across different businesses in the diversified corporation by leveraging core competencies and sharing activities

e.g. production and distribution facilities

 

This enables a corporation to benefit from economies of scope - cost savings from leveraging core competencies or sharing related activities among businesses in the corporation.

Term
Unrelated Diversification
Definition
  • vertical or hierarchial relationships

A firm entering a different business that has little horizontal interaction with other businesses of a firm.

 

The creation of synergies from the interaction of the corporate with the individual business units.

 

Term
Means to implement strategy
Definition
  • Mergers - 2 organizations of about equal size unite to form one enterprise
  • Strategic alliances - temporary partnership of two or more organizations formed to capitalize on some opportunity
  • Joint ventures - may result in formation of a separate entity in which equity is shared
  • Internal development
Term
3 corporate level strategies
Definition

Growth

Stability

Defensive

 

Term

Growth Strategy

 

Definition

Seek to increase organization's business by expanding into new products and markets

  • Concentration
  • Integration
  • Intensive
  • Diversification
Term
Stability
Definition
  • No or little change
  • Pause and Proceed with Caution
  • Profit

 

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