MGMT 449 Chapter Notes - Chapter NOTE: Ford Model T, Blue Ocean Strategy, Ryanair

15 views2 pages

giadinhhoailinh

16 Dec 2021

School

CSUF

Department

Management

Course

MGMT 449

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Thesis the economy has been developed for a long time, with many fields of production and business to meet market demand. Competition between businesses is inevitable when businesses join late. To develop in a large traditional market, it is required that businesses have a suitable business strategy. The reading blue ocean strategy by w. chan kim and rennee mauborgne, introduced a business strategy that help viewers have better understanding on competitive advantage of firms in various industries. Blue ocean vs red ocean are two different types of firms in business. Red oceans are companies that compete in the known market space, in contrast with blue oceans, where they make their own distinctive market based on the specialties in their services/product that they get to offered. These two types of firm work side to side in the business world and have separated themselves like oil and water.

Related Questions

The two biggest drawbacks or disadvantages of unrelated diversification are

A)underemphasizing the importance of resource fit and the strong likelihood of diversifying into businesses that top management does not know all that much about.

B)insufficient cash flows to finance so many different lines of business and a lack of uniformity among the strategies of the businesses it has diversified into.

C)volatile sales and profits and making the mistake of diversifying into too many cash cow businesses.

D)the difficulties of competently managing many different businesses and being without the added source of competitive advantage that cross-business strategic fit provides.

E)over-investing in the achievement of economies of scope and the difficulties of achieving a good mix of cash cow and cash hog businesses.

carmineserval589

To create value for shareholders via diversification, a company must
A) get into new businesses that are profitable.
B) diversify into industries that are growing rapidly.
C) spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
D) diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
E) diversify into businesses that have either key success factors or value chains that are similar to their present businesses.