Corporate-LevelStrategyMichaelA.HittR.DuaneIrelandRobertE.HoskissonChapter61StrategyImplementationChapter11OrganizationalStructureandControlsChapter10CorporateGovernanceChapter12StrategicLeadershipStrategyFormulationStrategicCompetitivenessAbove-AverageReturnsStrategicIntentStrategicMissionChapter2TheExternalEnvironmentChapter3TheInternalEnvironmentTheStrategicManagementProcessChapter6Corporate-LevelStrategyFeedbackStrategicInputsStrategicActionsStrategicOutcomesChapter13StrategicEntrepreneurshipChapter5CompetitiveRivalryandCompetitiveDynamicsChapter4Business-LevelStrategy2TwoLevelsofStrategyAdiversifiedcompanyhastwolevelsofstrategy1.Business-LevelStrategy

(CompetitiveStrategy)Howtocreatecompetitiveadvantageineachbusinessinwhichthecompanycompetes-lowcost -differentiation-focusedlowcost -focuseddifferentiation -integratedlowcost/ differentiation2.Corporate-LevelStrategy

(Company-wideStrategy)Howtocreatevalueforthecorporationasawhole3KeyQuestionsinCorporateStrategyBusinessUnitBusinessUnitBusinessUnitBusinessUnit1.Whatbusinessesshouldthecorporationbein?2.Howshouldthecorporateofficemanagethearrayofbusinessunits?CorporateStrategyiswhatmakesthecorporatewholeadduptomorethanthesumofitsbusinessunitparts4LevelsandTypesofDiversificationBusinessUnitLowLevelsofDiversificationSingleBusiness>95%ofbusinessfromasinglebusinessunitDominantBusinessBetween70and95%ofbusinessfromasinglebusinessunitBusinessUnit5RelatedConstrained<70%ofrevenuesfromdominantbusiness;allbusinessesshareproduct,technologicalanddistributionlinkagesLevelsandTypesofDiversificationBusinessUnitBusinessUnitModeratetoHighLevelsofDiversificationBusinessUnit6RelatedLinked(Mixed)<70%ofrevenuesfromdominantbusiness,andonlylimitedlinksexistLevelsandTypesofDiversificationBusinessUnitBusinessUnitModeratetoHighLevelsofDiversificationBusinessUnit7LevelsandTypesofDiversificationUnrelated<70%ofrevenuecomesfromthedominantbusiness,andtherearenocommonlinksbetweenbusinessesBusinessUnitBusinessUnitVeryHighLevelsofDiversificationBusinessUnit8AT&T的縮小規模AT&T曾歷經兩次分割案1984年非自願性分割第一次分割後持續購併成長高估整合的優點與忽略多角化後的經營複雜性1995年自願分割分割前的公司旗下有通訊事業電腦事業設備事業9電腦事業由購併NCR開始虧損連連,達80億設備事業的顧客與通訊事業間的競爭衝突美國政府放寬對通訊事業的管制公司決定縮小經營範疇,專心於核心事業AT&T的縮小規模10多角化企企業的演演化歷程程單一事業業整合策略略多角化策策略國際化策策略國際化策策略多角化策策略早期後期11ReasonsforDiversificationReasonstoEnhanceStrategicCompetitivenessEconomiesofscope(相關多角角化)Marketpower(相關多角角化)Financialeconomics(不相關多多角化)IncentivesResourcesManagerialMotives12IncentiveswithNeutralEffectsonStrategicCompetitivenessAnti-trustregulationTaxlawsLowperformanceUncertainfuturecashflowsFirmriskreductionIncentivesResourcesManagerialMotivesReasonsforDiversification13ResourceswithvaryingeffectsonvaluecreationandstrategiccompetitivenessTangibleresourcesfinancialresourcesphysicalassetsIntangibleresourcestacitknowledgecustomerrelationsimageandreputationIncentivesResourcesManagerialMotivesReasonsforDiversification14ManagerialMotives(ValueReduction)DiversifyingmanagerialemploymentriskIncreasingmanagerialcompensationIncentivesResourcesManagerialMotivesReasonsforDiversification15Value-creatingStrategiesofDiversification:OperationalandCorporateReadinessRelatedConstrainedDiversificationVerticalIntegration(MarketPower)UnrelatedDiversification(FinancialEconomies)BothOperationalandCorporateRelatedness(RareCapabilityandcanCreateDiseconomiesofScope)RelatedLinkedDiversification(EconomiesofScope)CorporateRelateness:TransferringSkillsintoBusinessesThroughCorporateHeadquartersLowHighSharing:OperationalRelatednessBetweenBusinessesLowHigh16AddingValuebyDiversificationDiversificationmosteffectivelyaddsvaluebyeitheroftwomechanisms:Economiesofscope:costsavingsattributedtotransferringthecapabilitiesandcompetenciesdevelopedinonebusinesstoanewbusinessMarketpower:whenafirmisabletosellitsproductsabovetheexistingcompetitivelevelorreducethecostsofitsprimaryandsupportactivitiesbelowthecompetitivelevel,orboth17AlternativeDiversificationStrategiesRelatedDiversificationStrategiessharingactivitiestransferringcorecompetenciesUnrelatedDiversificationStrategiesefficientinternalcapitalmarketallocationrestructuring18AlternativeDiversificationStrategiesRelatedDiversificationStrategiessharingactivities19SharingActivities:SharingactivitiesoftenlowerscostsorraisesdifferentiationSharingactivitiescanlowercostsifit:achieveseconomiesofscaleboostsefficiencyofutilizationhelpsmovemorerapidlydowntheLearningCurveSharingactivitiescanenhancepotentialfororreducethecostofdifferentiationMustinvolveactivitiesthatarecrucialtocompetitiveadvantageKeyCharacteristics20SharingActivities:StrongsenseofcorporateidentityClearcorporatemissionthatemphasizestheimportanceofintegratingbusinessunitsIncentivesystemthatrewardsmorethanjustbusinessunitperformanceAssumptions21RelatedDiversificationStrategiessharingactivitiestransferringcorecompetenciesAlternativeDiversificationStrategies22TransferringCoreCompetencies:ExploitsinterrelationshipsamongdivisionsStartwithvaluechainanalysisidentifyabilitytotransferskillsorexpertiseamongsimilarvaluechainsexploitabilitytotransferactivitiesKeyCharacteristics23TransferringCoreCompetencies:Transferringcorecompetenciesleadstocompetitiveadvantageonlyifthesimilaritiesamongbusinessunitsmeetthefollowingconditions:activitiesinvolvedinthebusinessesaresimilarenoughthatsharingexpertiseismeaningfultransferofskillsinvolvesactivitieswhichareimportanttocompetitiveadvantagetheskillstransferredrepresentsignificantsourcesofcompetitiveadvantageforthereceivingunitAssumptions24RelatedDiversificationStrategiessharingactivitiestransferringcorecompetenciesAlternativeDiversificationStrategiesUnrelatedDiversificationStrategiesefficientinternalcapitalmarketallocation25EfficientInternalCapitalMarketAllocation:Firmspursuingthisstrategyfrequentlydiversifybyacquisition:acquiresound,attractivecompaniesacquiredunitsareautonomousacquiringcorporationsuppliesneededcapitalportfoliomanagerstransferresourcesfromunitsthatgeneratecashtothosewithhighgrowthpotentialandsubstantialcashneedsaddprofessionalmanagement&controltosub-unitssub-unitmanagerscompensationbasedonunitresultsKeyCharacteristics26EfficientInternalCapitalMarketAllocation:ManagershavemoredetailedknowledgeoffirmrelativetooutsideinvestorsFirmneednotriskcompetitiveedgebydisclosingsensitivecompetitiveinformationtoinvestorsFirmcanreduceriskbyallocatingresourcesamongdiversifiedbusinesses,althoughshareholderscangenerallydiversifymoreeconomicallyontheirownAssumptions27RelatedDiversificationStrategiessharingactivitiestransferringcorecompetenciesUnrelatedDiversificationStrategiesefficientinternalcapitalmarketallocationAlternativeDiversificationStrategiesrestructuring28Restructuring:Seekoutundeveloped,sickorthreatenedorganizationsorindustriesParentcompany(acquirer)intervenesandfrequently:changessub-unitmanagementteamshiftsstrategyinfusesfirmwithnewtechnologyenhancesdisciplinebychangingcontrolsystemsdivestspartoffirmmakesadditionalacquisitionstoachievecriticalmassKeyCharacteristics29Restructuring:Frequentlysellunitaftermakingone-timechangessinceparentnolongeraddsvaluetoongoingoperationsKeyCharacteristics30Restructuring:RequireskeenmanagementinsightinselectingfirmswithdepressedvaluesorunforeseenpotentialMustdomorethanrestructurecompaniesNeedtoinitiaterestructuringofindustriestocreateamoreattractiveenvironmentAssumptions31IncentivestoDiversifyExternalIncentives:Relaxationofanti-trustregulationallowsmorerelatedacquisitionsthaninthepastBefore1986,highertaxesondividendsfavoredspendingretainedearningsonacquisitionsAfter1986,firmsmadefeweracquisitionswithretainedearnings,shiftingtotheuseofdebttotakeadvantageoftaxdeductibleinterestpayments32IncentivestoDiversifyInternalIncentives:PoorperformancemayleadsomefirmstodiversifytoattempttoachievebetterreturnsFirmsmaydiversifytobalanceuncertainfuturecashflowsFirmsmaydiversifyintodifferentbusinessesinordertoreducerisk33ResourcesandDiversificationBesidesstrongincentives,firmsaremorelikelytodiversifyiftheyhavetheresourcestodosoValuecreationisdeterminedmorebyappropriateuseofresourcesthanincentivestodiversify34ManagerialMotivestoDiversifyManagershavemotivestodiversifydiversificationincreasessize;sizeisassociatedwithexecutivecompensationdiversificationreducesemploymentriskeffectivegovernancemechanismsmayrestrictsuchmotives35相關與不相關關多角化的比比較策略創造價值的方式官僚成本的來源相關多角化技術移轉範疇經濟事業的數目事業間的協調不相關多角化內部資本市場重組事業的數目36RelationshipBetweenDiversificationandPerformancePerformanceLevelofDiversificationDominantBusinessUnrelatedBusinessRelatedConstrained37RelationshipBetweenFirmPerformanceandDiversificationIncentivesManagerialMotivesResourcesDiversificationStrategyFirmPerformanceInternalGovernanceStrategyImplementationCapitalMarketInterventionandtheMarketforManagerialTalent389、靜夜四四無鄰，，荒居舊舊業貧。。。1月-231月-23Sunday,January1,202310、雨雨中中黃黃葉葉樹樹，，燈燈下下白白頭頭人人。。。。20:45:5020:45:5020:451/1/20238:45:50PM11、以我獨沈久久，愧君相見見頻。。1月-2320:45:5020:45Jan-2301-Jan-2312、故人人江海海別，，幾度度隔山山川。。。20:45:5020:45:5020:45Sunday,January1,202313、乍見翻疑夢夢，相悲各問問年。。1月-231月-2320:45:5020:45:50January1,202314、他他鄉鄉生生白白發發，，舊舊國國見見青青山山。。。。01一一月月20238:45:50下下午午20:45:501月月-2315、比不了得就就不比，得不不到的就不要要。。。一月238:45下下午1月-2320:45January1,202316、行動動出成成果，，工作作出財財富。。。2023/1/120:45:5120:45:5101January202317、做前，能能夠環視四四周；做時時，你只能能或者最好好沿著以腳腳為起點的的射線向前前。。8:45:51下下午8:45下下午20:45:511月-239、沒有失敗，，只有暫時停停止成功！。。1月-231月-23Sunday,January1,202310、很多多事情情努力力了未未必有有結果果，但但是不不努力力卻什什么改改變也也沒有有。。。20:45:5120:45:5120:451/1/20238:45:51PM11、成功功就是是日復復一日日那一一點點點小小小努力力的積積累。。。