Options for Revising a Corporate Strategy

Read the overview below and complete the activities that follow.

Figure $8\mathrm{.}6$ shown below describes the strategic options that a diversified company can follow to improve their overall performance. They can,

$1.$ Stick closely with the existing business lineup and pursue the opportunities these businesses present.

$2.$ Broaden the company$$s business scope by making new acquisitions in new industries.

$3.$ Divest certain businesses and retrench to a narrower base of business operations.

$4.$ Restructure the company$$s business lineup and put a whole new face on the company$$s business makeup.

The goal of this exercise is for you to understand the four main corporate strategy options a diversified company can employ to improve company performance.

Before completing these exercises, be sure to review Chapter $8,$Corporate Strategy;$$ specifically, the section entitled $$Evaluating the Strategy of a Diversified Company.$$