CORPORATE STRATEGY (DIVERSIFICATION)

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Presentation transcript:

CORPORATE STRATEGY (DIVERSIFICATION) RELATED – STRATEGIC FIT, “THEME” UNRELATED (What is theme?) VERTICAL HORIZONTAL

DIVERSIFICATION Motives to Strengthen Competitiveness SHARING ACTIVITIES TRANSFERING CORE COMPETENCIES BLOCKING COMPETITORS VERTICAL INTEGRATION EFFICIENT INTERNAL USE OF CAPITAL BUSINESS RESTRUCTURING FINANCIAL ORG. DESIGN

DIVERSIFICATION Neutral Effects? ANTI-TRUST REGULATION TAX LAWS LOW PERFORMANCE UNCERTAIN FUTURE CASH FLOW RISK REDUCTION TANGIBLE, INTANGIBLE RESOURCES

DIVERSIFICATION “Managerial” Motives? DIVERSIFY MANAGERIAL EMPLOYMENT INCREASING SALARY