After our sixth board meeting, we decided to select board agenda item four: Opportunity for strategic review and to raise capital as one of our four agenda items within the six items. We thought this agenda was beneficial because we can raise capital to invest into digital media business which was fit to our business plan. Also, this agenda associated with the core strategic issues to fund strategic growth. Therefore, we could grasp the opportunities to redefine our key businesses that can bring high margins in the next few years. Goold and Campbell(1994, cited in Johnson et al, 2011，p.254) present a parenting matrix that shows four kinds of businesses to fit with the parent corporation that can provide the benefits to the business units. If we look over our business activities we have done before, we can probably clear that our group has growth significantly via many acquisitions and alliances. For example, we have aligned in China and India to seek more profitable and increase the share price in accordance to satisfy our shareholders. So that we thought there was necessary to review these businesses and analyse whichever business we would not go along with. We should clear that our core business is provide our clients with the creation and innovative advertising. There was a possibility for us to raise capital and retain core businesses if we sell out one non-core business. In addition, Johnson et al. (2011, p.255) referred to some businesses may provide accessible to attract them so that those businesses can increase their values and capabilities. However, these ones themselves are difficult to fit and damage our strategic proposition. Thus, we agreed that we should consider processing this agenda. Agenda Option Chosen After g... ... middle of paper ... ...his option suggested that we should do nothing of strategic review and raise capital as it impacted the strategic process of the other subsidiaries. However, we did really need to raise capital in order to invest into digital media (such as we might focus on doing business in the emerging Asia Pacific markets as those have become more attractable and created profits for our shareholders.) in and our shareholders have concerned the returns as a result of we need to do better in our businesses therefore we should take selling one non-core business into account. Works Cited Johnson, G., Whittington R., and Scholes, K. (2011), Exploring Strategy: Text & Cases, 9/e, Harlow: Pearson (FT Prentice-Hall). Klaus, P.( 2013), 'New insights from practice', International Journal Of Market Research, 55, 6, pp. 829-850, Business Source Complete, EBSCOhost, viewed 25 March 2014.
Thompson, Arthur, John Gamble, John Gamble, A. III, and Alonzo Strickland. Strategy. McGraw-Hill/Irwin, 2005. 299. Print.
Song, P. H., McAlearney, A., Robbins, J., & McCullough, J. S. (2011). Exploring the Business
Tovstiga (2013) provides three simple high-level frameworks for strategy analysis, ‘value proposition,’ ‘unique competing space’ and ‘opportunity-response’, to answer the pertinent questions of business strategy – where, how, why, what and when (chapter 5).
Hill, C. & Jones, G. Strategic management: an integrated approach, 5th ed. Houghton Mifflin Company: Boston. 2001.
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
Johnson, G., Scholes, K., Johnson, G. and Whittington, R. 2011. Exploring strategy. Harlow: Financial Times Prentice Hall.
Ros Dodd reports." Birmingham Post [England] 28 Mar. 2001: 40. Business Insights: Global. Web. 31 May 2018.
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
You have asked me to analyze your plans for future growth and recommend the best form of business organization to accommodate that growth. I have also taken into consideration you’re your two main concerns of increased liability and ability to add investment in capital assets.
The current circumstances have made us re-think about the governance of our company. To resolve certain issues like spread of our businesses, incompetent management, improper structure and high attrition rate has been addressed here. The strategic options evaluated are Divesting from some of the businesses, Re structuring the management by giving generalised top management or using specialized management. The options are evaluated on the basis of cash position, future projection, Repute preservation and efficient functioning of management. On the basis of these, I recommend to divest from irrelevant and non-performing businesses. This will ensure company’s smooth running and sustained profitability.
The strategy process third edition by Henry Mintzberg and James Brian Quinn third edition 1996
This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversify. Within this section the author plans to explore Microsoft’s related diversification approach, their corporate rationale, alongside why skill transferring is essential to them sustaining a competitive advantage and also how they achieved and utilized economies of scope (EOS). In the section regarding reasons why Microsoft chooses to diversify will be notions of proactive and defensive reasons, along with the idea of increasing market power and spreading risk. Then finally, a conclusion will follow summing up Microsoft’s overall ability to sustain a competitive advantage.
Firstly, to understand what Pisces’ corporate-level strategy is, understanding the term of is vital. Corporate-level strategy is strategies undertaken by firms to gain competitive advantage through diversification of single business operation to multiple operations competing in different product market (Ireland 154). From the concept, we will realise that Pisces had also adopted the use of International Strategy. International Strategy is strategies taken by a company by selling goods or services outside its home market. In the case of Pisces, they expanded by diversifying their operation out of its home (Singapore) market to Saudi Arabia, China, Thailand and more. We will discuss about the multi-domestic strategy that I feel that was the strategy adopted by Pisces. Multi-domestic strategies are strategies in which operation decision are made by the strategic business unit of each country to allow customization of decision towards the local market. For these areas, I will be making use of the Value-Creating Diversification Strategies (Ireland 159) and the International Corporate Level Strategies diagram to help me to assess the types of strategies deployed by Pisces.
Mason Carpenter, G. S. (2013). Strategic Management: Concepts and Cases Second Edition. Harlow: South-Western Pub.
First, companies identify interrelationships among already existing business units in order to seek for any opportunities to transfer skills or share activities. Second, companies select the core businesses that will be the foundation of the corporate strategy by determining the attractive industry and sustainable competitive advantages. Third, companies create horizontal organizational mechanisms to facilitate interrelationships among the core business units by strong corporate identity, mission statement emphasizes integration, and incentives for business-wide success. Fourth, companies pursue diversification opportunities that allow shared activities. Fifth, companies pursue diversification through the transfer of skills if opportunities for sharing activities are limited or exhausted. In other word, it is the stepping stone for sharing activities in the future. Sixth, companies pursue a strategy of restructuring if this fits the skills of management or no good opportunities exist for forging corporate interrelationships. At last, companies pay dividends so the shareholders can be the portfolio