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Corporate Level Strategy. MBA 693R Winter 2009. Mark H. Hansen Paul C. Godfrey. Corporate Level Strategy. Business Level Strategy: The positioning of a specific line of products and/or services (the copy paper business, the dog accessory business, etc.). Corporate Level Strategy:
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Corporate Level Strategy MBA 693R Winter 2009 Mark H. Hansen Paul C. Godfrey Marriott School – MBA 693R
Corporate Level Strategy Business Level Strategy: The positioning of a specific line of products and/or services (the copy paper business, the dog accessory business, etc.) Corporate Level Strategy: Deciding what businesses will comprise the firm What businesses should we be in? Exit? Marriott School – MBA 680
1) such that the value of the corporate whole increases 2) such that businesses forming the corporate whole are worth more than they would be under independent ownership 3) that equity holders cannot create through portfolio investing Logic of Corporate Level Strategy Corporate level strategy should create value: • a corporate level strategy should create synergies that are not available in equity markets • vertical integration = value chain economies (scale & scope) • diversification = economies of scope & scale Marriott School – MBA 693R