Question: 7. How can related diversification create a competitive advantage for the firm? What challenges might firms confront in achieving competitive advantages through related diversification strategy?

7. How can related diversification create a
7. How can related diversification create a competitive advantage for the firm? What challenges might firms confront in achieving competitive advantages through related diversification strategy? 1 8. What factors make it most likely that (a) acquisitions or (b) internal new venturing will be the preferred method to enter a new industry? 9. Imagine that Amazon has decided to diversify into the food delivery services. What method would you recommend that Amazon pursue to enter this industry? Why? 10. What kind of companies stand to gain the most from entering into strategic alliances? Discuss ways to increase the success rate with the strategic alliances. 11. How might a company configure its corporate governance systems and its strategy-making processes to reduce the probability that managers will pursue their own self-interest (agency behavior) at the expense of stockholders? 12. In a public corporation, should the CEO of the company also be allowed to be the chairman of the board (as allowed for by the current law)? What problems might this present? 13. What is the relationship among organizational structure, control systems, incentives, and culture? Give some examples of when and under what conditions a mismatch among these components might arise

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