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SCALE, SCOPE DIVERSIFICATION GLOBAL BUSINESS STRATEGY

PORTER

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SCALE, SCOPE DIVERSIFICATION GLOBAL BUSINESS STRATEGY

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    2. PORTER & OTHERS ON GENERIC STRATEGIES 3 INTO 2 COMPETITIVE COST LEADERSHIP DIFFERENTIATION NICHE SPECIAL- IZATION 3 INTO 2 COOPERATIVE POOLING (SHARING ACTIVITIES EXCHANGE (TRANSFERRING SKILLS) COMPLEMENTARY SPECIALIZATION (PORTFOLIO MGMT & RESTRUCTURING) WITHDRAWAL

    3. EDITH PENROSE ON FIRM GROWTH FIRMS CAN GROW ON THE BASIS OF SLACK OR EXCESS RESOURCES THAT ARISE NATURALLY GROWTH RESOURCES ARE AVAILABLE WITHIN THE NATURAL ORDER OF THINGS (EXAMPLES??) OTHER RESOURCES MAY BE ADDED, OF COURSE

    4. 3 DIMENSIONS OF SCOPE VERTICAL INTEGRATION EVERYTHING FROM MKTG, DISTRIBUTION, SALES & SERVICE GEOGRAPHY SUBREGIONAL & NATIONAL MKTS, IF NECESSARY PRODUCT MARKET SINGLE, MULTIPLE & FULL LINE STRATEGIES SINGLE, MULTIPLE, & MULTIBUSINESS STRATEGIES

    5. ECONOMIES OF SCALE DEFINITION- WHAT ARE THEY? VARIATIONS ON A THEME: 4Ss SCALE SCOPE SPECIALIZATION (INDIV, GROUP, DIV, AREA LEARNING) SPEED

    6. LIMITS TO SCALE ECONOMIES LEARNING NOT A LINEAR FUNCTION COMPETENCY TRAPS MINIMUM EFFICIENT SCALE SHIFTS DUE TO CHANGING TECH & MKT EXTERNAL FACTORS VALUE CHAIN LINKAGES IMPACT PRODUCTION INTERNAL FACTORS

    7. DIVERSIFICATION INTERNAL SOURCES RELATED UNRELATED EXTERNAL SOURCES MERGER & ACQUISITION CONSOLIDATION VS. NEW VENTURE

    8. MERGERS & ACQUISITIONS BENEFITS SPEED GET COMPLEMENTARY ASSETS (LOW CAUSAL AMBIGUITY) REMOVE COMPETITOR RESOURCES & CAPABILITIES GO UP DRAWBACKS COST OF ACQUISITION CULTURAL, ORGANIZATIONAL & OPERATIONAL CLASHES UNWANTED W/ WANTED RESOURCES SIZE OF COMMITMENT

    9. INTERNAL DEVELOPMENT BENEFITS INCREMENTAL CULTURALLY COMPATIBLE PROMOTES INTRAPRENEURSHIP INTERNAL INVESTMENT DRAWBACKS NEED TO BUILD NEW RESOURCES NEW RESOURCES NOT GO WELL OR AUTOMATICALLY W/EXISTING RESOURCES SUBSCALE ENTRY DIIFICULT TO RECOUP ON UNSUCCESSFUL INV.

    10. EQUITY PARTICIPATION & RELATIONAL CONTRACTING BENEFITS ACCESS TO COMPLEMENTARY ASSETS & FEWER PROBLEMS OF APPROPRIATION SPEED LOWER COSTS OF ACQUIRING ASSETS DRAWBACKS LACK OF FORMAL (AND INFORMAL) CONTROL AID POTENTIAL COMPETITOR LONGTERM VIABILITY QUESTIONABLE LEARNING DIFFICULTIES

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