Business Policy & Strategy Chapter 6

BUS 451 6 June 2011 Chapter 6 1. What is bodily direct leak and wherefore is it important? Specifies actions a sign takes to gain a agonistic advantage by learning and managing a group of opposite commercial enterprise competing in different product market. It helps companies select new strategy positions that argon expected to increase the secures value. 2. What be the different takes of diversification firms can quest after by victimization different collective-level strategy? Diversified firms digress according to their level of diversification and the connections amid and among their rail line. * Low levels of diversification: uses each a angiotensin converting enzyme or a ascendent handicraft, corporate level diversification strategy. Single business: 95% or more(prenominal)(prenominal) of the revenue comes from a single business. Dominant business: in the midst of 70% and 95% of revenue comes from a single business. * ca stigate and lofty levels of diversification: A firm generating more than 30% of its revenues outside a overabundant business and whose business be link to each other in somewhat personal manner uses a related to diversification corporate level strategy. When the link up between the diversified firms business are rather direct, a related constrained diversification strategy is being used.

A highly diversified firm that has no relationship between its businesses follows an unrelated diversification strategy. * deem to high levels of diversification: related constrained: less than 70% of revenue comes fro m the domain business, and all business sha! re product, technological, and dispersion linkages. Related linked (mixed related and unrelated): less than70% of revenue comes from the dominant business and there are only limited relate between business. Very high levels of diversification: Unrelated: little than 70% of revenue comes from the dominant business, and there are no common links between businesses. 3. What are the 3 reasons firms subscribe to diversify their operations? A firm uses a corporate...If you penury to get a full phase of the moon essay, distinguish it on our website: OrderCustomPaper.com

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