How can related diversification create a competitive advantage for the firm? Keeping the advantages of related diversification in mind, think back to the example in the chapter of Delta’s vertical integration decision to acquire an oil refinery—clearly an unrelated diversification move. What challenges might Delta confront in operating this refinery? Think of the strategic concepts you have learned and how they can help you evaluate Delta’s decision.
Answer to relevant QuestionsFranchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number of company-owned stores. How do you explain this difference? Is Starbucks bucking the bandwagon ...1. Is your firm highly vertically integrated? If yes, does it also employ taper integration?2. Are any of the vertical value chain operations off-shored? If so, list some of the pros and cons of having this part of the value ...IKEA is the world’s largest furniture retailer. It has many non-equity alliances with suppliers and manufacturers around the world. IKEA also makes strategic use of non-equity alliances and stakeholder partnerships to ...1. Given the forces on the Hollywood movie industry, is it likely we will see a decrease in the production of regional - and U.S.-centered movies, or will small independent movie producers pick up a higher share of the ...1. Review Exhibit and circle the organizational characteristics you find appealing. Cross out those factors you think you would not like. Do you find a trend toward either the mechanistic or organic organization?2. Have you ...
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