MANA 4385: Industry and Competitive Analysis
Chapter 6--Corporate-Level Strategy


I.    Corporate-Level Strategy Introduction
A. Corporate-level strategy definition
B. Levels and types of diversification (Figure 6.1, pg. 185)
1.    Low (single business, dominant business)

2.    Moderate to High (related constrained, related linked)

3.    Very High (unrelated)
II.    Competitive Benefits of Diversification (Table 6.1, pg. 187)
A.    Related Diversification
1.    economies of scope

2.    market power
B.    Unrelated Diversification
1.    efficient capital allocation

2.    business restructuring
III.    Other Diversification Motives
A.    Antitrust regulation and tax laws

B.    Low performance

C.    Uncertain future cash flows
IV.    Case Research--identify and evaluate your company’s type/level of diversification