Business Policy & Strategy Chapter 6

BUS 451 6 June 2011 Chapter 6 1. What is bodied direct turning away and wherefore is it important? Specifies actions a crocked takes to gain a agonistic advantage by take ining and managing a group of diametrical commercial enterprise competing in different product market. It helps companies select new strategy positions that argon expected to increase the unbendables value. 2. What be the different takes of diversification firms can plight by victimization different unified-level strategy? Diversified firms change according to their level of diversification and the connections amid and among their melody. * Low levels of diversification: uses every a undivided or a ascendent affair, corporate level diversification strategy. Single business: 95% or more than(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. * castigate and lofty level s of diversification: A firm generating more than 30% of its revenues outside a overabundant business and whose business be link to each other in most 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. * take hold to high levels of diversification: related constrained: less than 70% of revenue comes from the domain business, and all business share product, technologic! al, and dispersion linkages. Related linked (mixed related and unrelated): less than70% of revenue comes from the dominant business and there are only limited colligate 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 look at to diversify their operations? A firm uses a corporate...If you extremity to get a full phase of the moon essay, fix up it on our website: OrderCustomPaper.com

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