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Strategic Management: Strategic Managment
Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Corporate-Level Strategy: Creating Value Through Diversification

Chapter Objectives

Chapter 6

After reading this chapter, you should have a good understanding of:
  • How managers can create value through diversification initiatives.
  • The reasons for the failure of many diversification efforts.
  • How corporations can use related diversification to achieve synergistic benefits through economies of scope and market power.
  • How corporations can use unrelated diversification to attain synergistic benefits through corporate restructuring, parenting, and portfolio analysis.
  • The various means of engaging in diversification—mergers and acquisitions, joint ventures/strategic alliances, and internal development.
  • Managerial behaviors that can erode the creation of value.