mgmt 352 diversification-horizontal

diversification

leveraging a set of internal resources & capabilities to create advantage across multiple businesses

alliances and m&a

leveraging external capabilities through collaboration

corporate development

group at a corporation responsible for strategic decisions to grow & restructure its business, establish strategic partnerships, and/or achieve organizational excellence

horizontal scope

what range of products and services the firm should offer

types of horizontal diversification

single business, dominant business, related diversification, unrelated diversification

should we diversify?

better off test

how should we diversify?

internal development (go it alone) ot acquisition (buy your way in)

corporate restructuring

reorganizing & divesting business units & activities, helps refocus co, helps leverage core competencies more fully, helpful restructuring tool = BCG growth-share matrix

divestiture

disposal of a business unit through sale, spinoff, or bankruptcy as a part of corporate restructuring

BCG growth-share matrix

question mark, star, dog, cash cow