(BQ) Part 2 book "Essentials of strategic management" has contents: Corporate-Level strategy and long run profitability, implementing strategy through organizational design, cases instrategic management, strategy implementation,.and other contents. | Chapter 7 Chapter 7 Learning Objectives Corporate-Level Strategy and Long-Run Profitability After reading this chapter, you should be able to Chapter Outline 1. Discuss the arguments for and against concentrating a company’s resources and competing in just one industry 2. Explain the conditions under which a company is likely to pursue vertical integration as a means to strengthen its position in its core industry 3. Appreciate the conditions under which a company can create more value through diversification and why there is a limit to successful diversification 4. Understand why restructuring a company is often necessary and discuss the pros and cons of the strategies a company can adopt to exit businesses and industries Overview I. Concentration on a Single Industry a. Horizontal Integration b. Benefits and Costs of Horizontal Integration c. Outsourcing Functional Activities II. Vertical Integration a. Arguments for Vertical Integration b. Arguments Against Vertical Integration c. Vertical Integration and Outsourcing III. Entering New Industries Through Diversification a. Creating Value Through Diversification b. Related versus Unrelated Diversification IV. Restructuring and Downsizing a. Why Restructure? b. Exit Strategies The principal concern of corporate-level strategy is to identify the industry or industries a company should participate in to maximize its long-run profitability. A company has several options when choosing which industries to compete in. First, a company can concentrate on only one industry and focus its activities on developing business-level strategies to improve its competitive position in that industry (see Chapter 5). Second, a company may decide to enter new industries in adjacent stages of the industry value chain by pursuing a strategy of vertical integration, which means 162 CHAPTER 7 Corporate-Level Strategy and Long-Run Profitability 163 it begins to make its own inputs and/or sell its own products. Third, a company .
