MIE 480 Chapter Notes - Chapter 10: Product Bundling, Capital Market, Strategic Management
20 Jul 2020
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Ways in which profitability can be increased. Transfer competencies between business units in different industries. Leverage competencies to create business units in new industries. Share resources between business units to realize synergies or economies of scope. Utilize general organizational competencies that increase the performance. Corporate-level strategy based on the goal of establishing a business unit in a new industry related to a company"s existing business units. By some form of commonality or linkage between their value-chain functions. Taking advantage of strong commonalities that can be modified to increase the competitive advantage. Allowing a company to use any general organizational competency it possesses. Corporate-level strategy that uses general organizational competencies to increase the performance of all the company"s business units. Internal capital market: corporate-level strategy whereby the firm"s headquarters assesses the performance of business units and allocates money across them. Entry into a wrong business or at the wrong time or for the wrong reasons.
