Chapter 7 Developing Corporate Strategy. OBJECTIVES. 1. Define corporate strategy. 2. Understand the roles of economies of scope and revenue-enhancement synergy in corporate strategy. 3. Explain the different forms of diversification. 4.
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3THREE CORPORATE STRATEGY DECISIONS THAT ARISE WHEN MAKING ENTRY/EXIT DECISIONS
1980: fluid control industry
1979: Begins selling 250 business units, including all telecom businesses
1968: Buys Sheraton Hotels
1995: ITT Corporation (hospitality, entertainment, IT services)
Now part of Starwood Hotel & Resorts
1968: Buys Continental Bakery (Hostess)
Sold in 1984 to Interstate BakeryA BRIEF HISTORY AND GENEOLOGY OF A CONGLOMERATE :ITT
1995: ITT Industries (auto, defense & electric systems, & fluid-control)
The Surviving ITT
1940: Electronics businesses
1925: telecom equipment mfr.
International Telephone and Telegraph
1995: ITT Hartford (financial services)
Now Hartford Financial Services
1960 Enters auto parts industry
1969: Buys Hartford Insurance
Valuation of profit
Fit among parent-subsidiary resources
Fit of parent-subsidiary dominant logic
What is a dominant logic?
Coke andPepsi expandedinto water
Pulte HomesInc. created Pulte Mortgage LLC)