1. Premises Of Corporate Strategy
Competition Occurs Only at the Business Unit Level

2. Premises Of Corporate Strategy
Competition Occurs Only at the Business Unit Level
Diversification Inevitably Adds Costs and Constraints to Business Units

3. Premises Of Corporate Strategy
Competition Occurs Only at the Business Unit Level
Diversification Inevitably Adds Costs and Constraints to Business Units
Shareholders Can Readily Diversify Themselves

4. Passing the Essential Tests
The Attractiveness Test

5. Passing the Essential Tests
The Attractiveness Test
The Cost-of-Entry Test

6. Passing the Essential Tests
The Attractiveness Test
The Cost-of-Entry Test
The Better-off Test

7. Concepts of Corporate Strategy
Portfolio Management
--Acquire sound, attractive companies with competent mangers who stay
--Companies are autonomous
--Requires good but undervalued companies
--Essentially an LBO concept with a “conglomerate discount” for public companies

8. Concepts of Corporate Strategy
Restructuring
--Underdeveloped, sick, or threatened organizations or industries on the threshold of significant change
--Parent intervenes frequently changing the management team, shifting strategy, or infusing the company with new technology
--Business is sold when parent is no longer adding value

9. Concepts of Corporate Strategy
Transferring skills
--Knowledge about how to perform activities is transferred among the units
--Characterized by units with similar buyers, channels, value activities and/or the same strategic concept
--Expertise must be a meaningful source of competitive advantage

10. Concepts of Corporate Strategy
Sharing activities
--Leads to lowering costs or raising differentiation
--Must involve activities that are significant to competitive advantage
and costs outweighed by benefits
--Business unit collaboration is encouraged and reinforced

11. Concepts of Corporate Strategy
Portfolio Management
Restructuring
Transferring Skills
Sharing Activities

12. An Action Program
Identify Interrelationships Among Units

13. An Action Program Identify Interrelationships Among Units
Select Core Business

14. An Action Program Identify Interrelationships Among Units
Select Core Business
Facilitate Interrelationships

15. An Action Program Identify Interrelationships Among Units
Select Core Business
Facilitate Interrelationships
Diversify Via Shared Activities

16. An Action Program Identify Interrelationships Among Units
Select Core Business
Facilitate Interrelationships
Diversify Via Shared Activities
Diversify Via Transfer of Skills

17. An Action Program Identify Interrelationships Among Units
Select Core Business
Facilitate Interrelationships
Diversify Via Shared Activities
Diversify Via Transfer of Skills
Diversify Via Restructuring

18. An Action Program Identify Interrelationships Among Units
Select Core Business
Facilitate Interrelationships
Diversify Via Shared Activities
Diversify Via Transfer of Skills
Diversify Via Restructuring
Pay Dividends Instead