Knowledge Manager - Business Intl Strategy

A Firm diversify by INTERNAL and OFFENSIVE when they want to

• Deploy resources to deter entry Signal commitment

• Leverage a core competence or valuable recource

• Acquire resources and Take advantage of opportunities

• Respond to a threat

A Firm diversify by INTERNAL and DEFENSIVE when they want to

• Deploy resources to deter entry Signal commitment

• Leverage a core competence or valuable recource

• Acquire resources and Take advantage of opportunities

• Respond to a threat

A Firm diversify by EXTERNAL and OFFENSIVE when they want to

• Deploy resources to deter entry Signal commitment

• Leverage a core competence or valuable recource

• Acquire resources and Take advantage of opportunities

• Respond to a threat

A Firm diversify by EXTERNAL and DEFENSIVE when they want to

• Deploy resources to deter entry Signal commitment

• Leverage a core competence or valuable recource

• Acquire resources and Take advantage of opportunities

• Respond to a threat

Initial diversification often occurs...

• As a part of a deliberate plan

• Because a bigger corporation buy you

• Incidentally

• When CEO is replaced

PORTER'S TEST OF DIVERSIFICATION - PREMISES OF CORPORATE STRATEGY (3 options are correct)

• Shareholders can readily diversify themselves

• Diversification helps to cut costs at business units

• Diversification inevitably adds costs and constraints to business units

• Competition occurs only at the business unit level

KEY points of DIVERSIFICATION (2 options are correct)

• The drivers for diversification are very easy to use and accessible for companies

• The difficulty of horizontal diversification is very often underestimated and can be deadly for firms

• It is highly recommended to Listed Companies to use diversification, no matter which area or sector they are

• More generally markets facing institutional or market failures may create a context where diversification is more attractive and feasible

What are the responsabilities of a CEO? (2 options are correct)

• Overall success of a business entity or other organization and for making top-level managerial decisions.

• Overseeing the day-to-day administrative and operational functions of a business

• Leading the development and execution of long-term strategies, with the goal of increasing shareholder value.

• Tracking cash flow and financial planning and analyzing the company's financial strengths and weaknesses

Corporate governance is...

• The department in a company that cares about politics

• The system by which companies are directed and controlled

• Where the CFO is reporting

• Where independent counselors and advisors are allocated

The fundamental objective of corporate governance is...

• To control the CEO and Management to follow the corporate decisions

• Just as an external advisor for the company

• To boost and maximize shareholder value and protect the interest of other stakeholders

• To increase the company value for being sold in 3 years