Escolar Documentos
Profissional Documentos
Cultura Documentos
Corporate-Level
Strategy:
Formulating
and
Implementing
Related and
Unrelated
Diversification
The very best takeovers are
thoroughly hostile. Ive never
seen a really good company
taken over.
Ive only
seen bad ones.
- James Goldsmith
Source: Reprinted by permission of Harvard Business School Press. From Competing for the Future: Breakthrough Strategies for
Seizing Control of Your Industry and Creating the Markets of Tomorrow by Gary Hamel and C. K. Prahalad, Boston, MA. Copyright
1994 by Gary Hamel and C. K. Prahalad. All rights reserved.
Increasing Profitability
Through Diversification
A diversified company can create value by:
Transferring competencies among
existing businesses
Leveraging competencies
to create new businesses
Sharing resources
to realize economies of scope
Using product bundling
Managing rivalry by
using diversification as a means in one or more industries
Exploiting general organizational competencies that
enhance performance within all business units
Why restructure?
Diversification discount: investors see highly
diversified companies as less attractive
Complexity and lack of transparency in financial
statements
Too much diversification
Diversification for the wrong reasons
Response to failed acquisitions
Innovations in strategic management have
diminished the advantages of vertical integration
or diversification
Growth does not always lead a
business to build on success.
All too often it converts a highly
successful business into a
mediocre large business.
- Richard Branson