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Sabtu, 7 Disember 2013

Chapter 8 and 9

Assalamualaikum w.b.t

In that week, miss Ummi informed that the corporate agency should diversify their strategy when:

  • technologies and product complement it's present business
  • resources and capabilities can be used as valueable competitive assets
  • cost reduce b cross-business sharing or transfer of resources and capabilities
  • transfer a strong brand name to the product of other business help to increse sales and profit 

The corporate agency also need to testing the strategy whether diversification  add value for shareholders.
  1. The attractiveness test = investment as good or better than presnt business?
  2. The cost of entry test = cost of overcoming entry barries so great as long as delay
  3. The better-off test= 1+1=3 synergy
Synergy is 1+1=3. It is not 1+1=2. The advantages and disadvantages of synergy are:

Advantages (+)
  • quick entry into an industry
  • barries to entry avoided
  • access to complementary resources and capabilities

Disadvantages (-)
  • pay a premium for a successful firm
  • overestimating the acquisition's potential to deliver added shareholder value
  • underestimating cost for integrating firm

And corporate venturing is process of developing new business as an outgrowth of a firm's established business operations.
 

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