BPS 4305 Lecture Notes - Lecture 16: Transfer Pricing, Capital Market, Paper Towel
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Pros: can bring long lasting quality, factory capabilities. Cons: may not be a growing, differentiating in houses wanted in us, in taking a cost. Using resources and capabilities to drive market and gain synergy. How can these businesses be manage so they can create a synergy . Corporate level strategy should create value: 1. Such that businesses forming the corporate whole are worth more than they would be under independent ownership. Stakeholders can buy in that industry on their own without a single company. Does it give more when this previously existing brand can enhance: 2. That equity holders cannot create through portfolio investing. Therefore: corporate level strategy must create synergies between divisions that create value that couldn"t be created by independent ownership. Integration value chain of current products/businesses: raw materials supplier focal firm distribution customer , backward. Diversification different products/businesses: other businesses -------- current businesses -------- other business , no links unrelated.