MGMT 449 Study Guide - Final Guide: Counterfeit Money, Offshoring, Chief Operating Officer
Document Summary
Chapter 6: level strategy: creating value through diversification. Corporate-level strategy a strategy that focuses on gaining long-term revenue, pro ts, and market value through managing operations in multiple businesses. Diversification the process of rms expanding their operations by entering new businesses. Cost saving from leveraging core competencies or sharing related activates among businesses in a corporation pooled negotiating power the improvement in bargain position relative to suppliers and customers market power. A rms abilities to pro t through restricting or controlling supply to a market or coordinating with other rms to reduce investment. Vertical integration an expansion or extension of the rm by integrating preceding or successive production. Ex: low vertical integration: bmw- they don"t make their own parts. Ex: high vertical integration : -tesla, they make their own battery. Tesla creates a shop inside so they have direct contact to the customers. Ef ciency of the market improved, so hollywood chose to transition into low vertical integration.
