ch06Corporate-LevelStrategy(戰(zhàn)略管理,英文版)

1、Chapter 6Corporate-Level StrategyMichael A. HittR. Duane IrelandRobert E. Hoskisson2000 South-Western College PublishingChapter 3InternalEnvironmentChapter 2ExternalEnvironmentThe StrategicManagementProcessStrategic IntentStrategic MissionStrategicCompetitivenessAbove AverageReturnsFeedbackStrategy

2、FormulationChapter 4Business-LevelStrategyChapter 5CompetitiveDynamicsChapter 6Corporate-LevelStrategyChapter 8InternationalStrategyChapter 9CooperativeStrategiesChapter 7Acquisitions &RestructuringStrategy ImplementationChapter 10CorporateGovernanceChapter 11Structure& ControlChapter 12StrategicLea

3、dershipChapter 13Entrepreneurship & InnovationStrategicInputsStrategicActionsStrategic OutcomesHow to create value for the corporation as a whole2. Corporate-Level Strategy (Companywide Strategy)- low cost- differentiation- integrated low cost/differentiation- focused low cost- focused differentiati

4、onHow to create competitive advantage in each business in which the company competes1. Business-Level Strategy (Competitive Strategy)A Diversified CompanyHas Two Levels of Strategy1. What businesses should the corporation be in?2. How should the corporate office manage the array of business units?Co

5、rporate Strategy is what makes the corporate whole add up to more than the sum of its business unit partsKey Questions of Corporate StrategyLevels and Types of DiversificationLow Levels of DiversificationModerate to High Levels of DiversificationVery High Levels of DiversificationRelated linked (mix

6、ed) 95% of revenues from a single business unitADominant businessBetween 70% and 95% of revenues from a single business unitBAUnrelated-DiversifiedBusiness units not closely related ABC 70% of revenues from dominant business; all businesses share product, technological and distribution linkagesRelat

7、ed constrainedABCMotives, Incentives, and Resourcesfor DiversificationMotives to Enhance Strategic CompetitivenessEconomies of ScopeMarket PowerFinancial EconomiesResourcesManagerialMotivesIncentivesIncentives and Resources with Neutral Effects of Strategic CompetitivenessAnti-Trust RegulationTax La

8、wsLow PerformanceUncertain Future Cash FlowsFirm Risk ReductionTangible ResourcesIntangible ResourcesManagerialMotivesResourcesIncentivesMotives, Incentives, and Resourcesfor DiversificationManagerial Motives Causing Value ReductionDiversifying ManagerialEmployment RiskIncreasing Managerial Compensa

9、tionManagerialMotivesResourcesIncentivesMotives, Incentives, and Resourcesfor DiversificationSummary Model of theRelationship Between FirmPerformance and DiversificationDiversificationStrategyManagerialMotivesResourcesIncentivesAdding Value by DiversificationDiversification most effectively adds val

10、ue by either of two mechanisms:By developing economies of scope between business units in the firms which leads to synergistic benefitsBy developing market power which leads to greater returnsAlternative Diversification StrategiesRelated Diversification StrategiesUnrelated Diversification Strategies

11、Sharing ActivitiesTransferring Core CompetenciesEfficient Internal Capital Market AllocationRestructuringKey Characteristics:Example: Using a common physical distribution system and sales force such as Procter & Gambles disposable diaper and paper towel divisionsExample: General Electrics costs to a

12、dvertise, sell and service major appliances are spread over many different productsSharing ActivitiesAlternative Diversification StrategiesAchieves economies of scaleBoosts efficiency of utilizationHelps move more rapidly down Learning CurveSharing Activities often lowers costs or raises differentia

13、tionSharing Activities can lower costs if it:Example: Shared order processing system may allow new features customers value or make more advanced remote sensing technology availableExample: Procter & Gambles sharing of sales and physical distribution for disposable diapers and paper towels is effect

14、ive because these items are so bulky and costly to shipKey Characteristics:Sharing ActivitiesAlternative Diversification StrategiesSharing Activities can enhance potential for or reduce the cost of differentiationMust involve activities that are crucial to competitive advantageAssumptions:Sharing Ac

15、tivitiesAlternative Diversification StrategiesStrong sense of corporate identityClear corporate mission that emphasizes the importance of integrating business unitsIncentive system that rewards more than just business unit performanceAlternative Diversification StrategiesRelated Diversification Stra

16、tegiesUnrelated Diversification StrategiesSharing ActivitiesTransferring Core CompetenciesEfficient Internal Capital Market AllocationRestructuringKey Characteristics:Transferring Core CompetenciesAlternative Diversification StrategiesIdentify ability to transfer skills or expertise among similar va

17、lue chainsExploit ability to transfer activitiesExploits Interrelationships among divisionsStart with Value Chain analysisAssumptions:Transferring Core Competencies leads to competitive advantage only if the similarities among business units meet the following conditions:Activities involved in the b

18、usinesses are similar enough that sharing expertise is meaningfulTransfer of skills involves activities which are important to competitive advantageThe skills transferred represent significant sources of competitive advantage for the receiving unitTransferring Core CompetenciesAlternative Diversific

19、ation StrategiesAlternative Diversification StrategiesRelated Diversification StrategiesUnrelated Diversification StrategiesSharing ActivitiesTransferring Core CompetenciesEfficient Internal Capital Market AllocationRestructuringKey Characteristics:Firms pursuing this strategy frequently diversify b

20、y acquisition:Efficient Internal Capital Market AllocationAlternative Diversification StrategiesAcquire sound, attractive companiesAcquired units are autonomousAcquiring corporation supplies needed capital Portfolio managers transfer resources from units that generate cash to those with high growth

21、potential and substantial cash needsAdd professional management & control to sub-unitsSub-unit managers compensation based on unit resultsAssumptions:Efficient Internal Capital Market AllocationAlternative Diversification StrategiesManagers have more detailed knowledge of firm relative to outside in

22、vestorsFirm need not risk competitive edge by disclosing sensitive competitive information to investorsFirm can reduce risk by allocating resources among diversified businesses, although shareholders can generally diversify more economically on their ownAlternative Diversification StrategiesRelated

23、Diversification StrategiesUnrelated Diversification StrategiesSharing ActivitiesTransferring Core CompetenciesEfficient Internal Capital Market AllocationRestructuringKey Characteristics:Restructuring- Changes sub-unit management team- Shifts strategy- Infuses firm with new technology- Divests part

24、of firm- Makes additional acquisitions to achieve critical mass- Enhances discipline by changing control systemsAlternative Diversification StrategiesSeek out undeveloped, sick or threatened organizations or industriesParent company (acquirer) intervenes and frequently:Frequently sell unit after mak

25、ing one-time changes since parent no longer adds value to ongoing operationsAssumptions:RestructuringAlternative Diversification StrategiesRequires keen management insight in selecting firms with depressed values or unforeseen potentialMust do more than restructure companiesNeed to initiate restruct

26、uring of industries to create a more attractive environmentInternal Incentives:Incentives to DiversifyRelaxation of Anti-Trust regulation allows more related acquisitions than in the pastBefore 1986, higher taxes on dividends favored spending retained earnings on acquisitionsAfter 1986, firms made f

27、ewer acquisitions with retained earnings, shifting to the use of debt to take advantage of tax deductible interest paymentsExternal Incentives:Poor performance may lead some firms to diversify to attempt to achieve better returns Value-creating Strategies of DiversificationOperational and Corporate RelatednessSharing:OperationalRelatednessBetweenBusinessCorporate Relatedness: Transferring Skills Into Business Through Corporate HeadquartersLowHighHighLowRelated Linked Diversification(Economies of Scope)UnrelatedDiversification(Financial Economies)Both Operational and Corporate Relatedne