BPL 5100H Quiz: BPL quiz

• School: Baruch College
• Department: Business Policy
• Course: BPL 5100H
• Professor: Sandip Basu

Document Summary

Increase prices works as a signal of cooperation. Responsible for leadership of competitive strategy (indirectly) Responsible for formulation and implementation of corporate strategy (directly) Involves: decisions on businesses or industries that the company should compete in (scope of firm, approaches to enter new businesses or exit existing businesses, management of businesses together within the company (organization design) The process of firms expanding their scope by entering new businesses. Objective: combined value of the firm should increase after diversification. Possible long-term outcomes: adaptation and renewal: change in primary business. Ibm move from hardware to information system: ge"s (cid:373)o(cid:448)e fro(cid:373) (cid:373)a(cid:374)ufa(cid:272)turi(cid:374)g to fi(cid:374)a(cid:374)(cid:272)ial ser(cid:448)i(cid:272)es (cid:894)a(cid:374)d (cid:271)a(cid:272)k(cid:895, often not planned at the outset. Related diversification: whe(cid:374) there are so(cid:373)e (cid:862)sy(cid:374)ergies(cid:863) of the new businesses with existing businesses. Unrelated diversification: when synergies are weak or non-existent, as extent of unrelatedness increases: greater strain on resources, problems in implementation and coordination, could even harm core businesses, cost outweigh synergy benefits.