Grp5 - Corporate Strategy.pptx report i school

Report for the school

1. Strategy Formulation: GROUP 5 Acido Alolor Coberos Itao Corporate Strategy

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3. JOMELLE 01 Add a brief introduction of your section here: Let’s dive in and get to know some interesting facts about animals!

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5. JOMELLE 01 Add a brief introduction of your section here: Let’s dive in and get to know some interesting facts about animals!

6. Vertical Integration vs. Marketplace Efficiency: Vertical integration may be preferred when transaction costs of contracting are high. This includes the costs of drafting, negotiating, and managing contracts, as well as resolving disputes. We will talk about this second. Transaction cost economics suggests that owning resources through vertical integration can be more efficient than contracting for goods if the transaction involves specialized assets, high uncertainty, and frequent interactions. And we will talk about this last. However, excessive vertical integration can lead to inefficiencies due to increased bureaucratic costs and internal management challenges.

7. Conditions for Vertical Integration High level of uncertainty surrounding the transaction. Assets involved are highly specialized. Frequent occurrence of the transaction. Conditions for Vertical Integration Companies may partially control suppliers or distributors without full ownership, ensuring access to key resources or distribution channels. Examples include investing in or acquiring stock in other companies to secure product access.

8. Long-Term Contracts and Cooperative Relationships Long-term contracts and cooperative agreements, such as outsourcing and strategic alliances, can sometimes be preferable to full vertical integration. Examples include outsourcing services and forming strategic partnerships to enhance capabilities. Horizontal Growth Horizontal growth involves expanding product lines or geographic locations, either through internal development or acquisitions . It is often achieved by entering new markets or expanding existing ones, as seen with companies like Walt Disney and U.S. Airways.

9. MAM HAZEL ― Irene M. Pepperberg

10. MAM HAZEL Did you know that dogs can smell your feelings? Dogs can pick up on subtle changes in your scent, which can help him figure out how you are feeling, such as by smelling your perspiration when you become nervous or fearful. Did you know that a cat uses its whiskers as feelers to determine if a space is too small to squeeze through? Also, cats love to sleep. A fifteen-year-old cat has probably spent ten years of its life sleeping.

11. MAM HAZEL ― Irene M. Pepperberg

12. Corporate Parenting Corporate parenting or Parenting strategy views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units. A widely accepted definition is that: “Multibusiness companies create value by influencing—or parenting—the businesses they own. The best parent companies create more value than any of their rivals would if they owned the same businesses. Those companies have what we call parenting advantage.”

13. The search for appropriate corporate strategy involves three analytical steps: 1. Examine each business unit (or target firm in the case of acquisition) in terms of its strategic factors. 2. Examine each business unit (or target firm) in terms of areas in which performance can be improved: 3. Analyze how well the parent corporation fits with the business unit (or target firm):

14. Horizontal Strategy and Multipoint Competition Horizontal strategy -is a corporate strategy that cuts across business unit boundaries to build synergy between business units and to improve the competitive position of one or more business units. In multipoint competition , large multi-business corporations compete against other large multibusiness firms in a number of markets. These multipoint competitors are firms that compete with each other not only in one business unit, but also in a number of business units.

15. Thank you! Do you have any questions? Group 5