Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Google corporate strategy case study

11/10/2021 Client: muhammad11 Deadline: 2 Day

Corporate Strategy And Diversification

Your well-written paper should meet the following requirements:

Be 7 pages in length, which does not include the title page or required reference page, which are never a part of the content minimum requirements.

Use APA style guidelines.

Support your submission with course material concepts, principles, and theories from the textbook and at least (FOUR ) scholarly, peer-reviewed journal articles unless the assignment calls for more.

--------------------------------------------------------------------------------------------------------------------------------

Corporate diversification strategies raise a wide range of strategic management issues. For this week’s critical thinking assignment, read the case study (Attached) (Case 19): Google Is Now Alphabet—But What’s the Corporate Strategy?

Remember, a case study is a puzzle to be solved, so before reading and answering the specific case and study questions, develop your proposed solution by following these five steps:

Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in some detail the actions that would address or correct the situation.
Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
Case Study Questions:

What is Google’s corporate strategy? Does Google have a clear vision of what it wants to become?
Use Porter’s Essentials Test (Chapter 12 " Attached to have idea ") to determine if this strategy creates competitive advantage. If so, how? If not, why not?
Look beyond the conventional sources of synergy and consider complementarities, bargaining power, and rivals. What threats does Google face?
Does Google need to refocus? How should Google delineate its corporate boundaries and which businesses, or products would you recommend abandoning or divesting, if any?

CONTEMPORARY STRATEGY ANALYSIS

tenth edition

Robert M. Grant

John Wiley & Sons Ltd., 2019

Chapter 12

Diversification

Strategy

Introduction: The Basic Issues
Motives for Diversification
Competitive Advantage from Diversification
Diversification and Performance
The Meaning of Relatedness in Diversification
Diversification Strategy

Copyright © 2019 John Wiley & Sons, Inc.

OUTLINE

27

INDUSTRY

ATTRACTIVENESS

COMPETITIVE

ADVANTAGE

Superior profit derives from two sources:

Diversification decisions involve these same two issues:

How attractive is the industry to be entered?
Can the firm achieve a competitive advantage?
Core Issues in Diversification Decisions

Copyright © 2019 John Wiley & Sons, Inc.

RETURN ON CAPITAL

> COST OF CAPITAL

INTRODUCTION: THE BASIC ISSUES

United States

United Kingdom

%

Diversification Strategies of US and UK Corporations during the 20th Century

Copyright © 2019 John Wiley & Sons, Inc.

INTRODUCTION: THE BASIC ISSUES

IMPLICATIONS

FOR

DIVERSIFICATION

STRATEGY

MANAGEMENT

GOALS

STRATEGY

TOOLS AND

CONCEPTS

Growth

Making diversification profitable

Creating shareholder value

1960 1970 1980 1990 2000 2018

Diversification by established firms
Emergence of conglomerates
Boom in M&A
Core business focus
Divestments, and spin-offs
Leveraged buyouts
Financial
analysis

M-form
structures

Corporate
planning

Economies of
scope

Portfolio
planning models

Modern
financial theory

Shareholder
value

Transaction cost
analysis

Core competence
Dominant logic
Corporate advantage

Product bundling and customer solutions
Alliances
Growth options
Parenting advantage
Real options
Demand-side economies of scope
Tech platforms
Emphasis on
related

diversification

Quest for
synergy

The Evolution of Diversification Strategies, 1960-2018

INTRODUCTION: THE BASIC ISSUES

Copyright © 2019 John Wiley & Sons, Inc.

*

1

The desire to escape stagnant or declining industries a powerful motives for diversification (e.g. tobacco, oil, newspapers).
But, growth in the interests of managers not shareholders
Growth-seeking diversification (esp. by acquisition) tends to destroy shareholder value
Diversification reduces the variance of profit flows
But, doesn’t create value for shareholders—they can
hold diversified portfolios of securities. [Capital Asset

Pricing Model shows that diversification only lowers

unsystematic risk not systematic risk]

For diversification to create shareholder value, then
bringing putting different businesses under common

ownership must increase their total profitability

Motives for Diversification

Copyright © 2019 John Wiley & Sons, Inc.

GROWTH

RISK SPREADING

VALUE CREATION

MOTIVES FOR DIVERSIFICATION

31

For diversification to create shareholder value, it must meet three tests:

1. The Attractiveness Test: diversification must be directed towards attractive industries (or those with e the potential to become attractive).

2. The Cost of Entry Test : the cost of entry must not capitalize all future profits.

3. The Better-Off Test: either the new unit must gain competitive advantage from its link with the company, or vice-versa. (i.e. some form of “synergy” must be present)

Diversification and Shareholder Value: Porter’s Three Essential Tests

Copyright © 2019 John Wiley & Sons, Inc.

MOTIVES FOR DIVERSIFICATION

32

Sources of Competitive

Advantage from Diversification

Copyright © 2019 John Wiley & Sons, Inc.

`COMPETITIVE ADVANTAGE FROM DIVERSIFICATION

ECONOMIES OF SCOPE Sharing tangible resources (e.g. research labs, distribution systems) across multiple businesses
Sharing intangible resources (e.g. brands, technology) across multiple businesses
Transferring functional capabilities (e.g. marketing, product development) across businesses
Applying common general management capabilities to different businesses
ECONOMIES FROM INTERNALIZING TRANSACTIONS Economies of scope not a sufficient basis for diversification—must be supported by transaction costs in markets for resources
Diversified firm can avoid external transactions by operating internal capital and labor markets
Diversified firm has better information on resource characteristics than external markets
*

The Findings of Empirical Research

Copyright © 2019 John Wiley & Sons, Inc.

DIVERSIFICATION AND PERFORMANCE

Do diversified firms outperform specialized firms? No consistent relationship Evidence of a ∩-shaped relationship: dn. first increases profitability, then further dn. reduces profitability (increased complexity?) McKinsey & Co. identify benefits from moderate dn.—especially for firms that have run out of growth opportunities Question of direction of causation: does dn. drive profitability, or vice-versa?
What type of diversification is most profitable? ---Related dn. vs. unrelated dn. Most studies show related dn. outperforms unrelated dn. Related dn. offers greater synergies—but also imposes higher management costs But what is “related dn.”? Businesses can be related in many different ways (e.g. LMVH, GE, Virgin group)
Economies of scope in diversification derive from two types of relatedness:

Operational Relatedness—synergies from sharing resources across businesses (common distribution facilities, brands, joint R&D)
Strategic Relatedness—synergies at the corporate level deriving from the ability to apply common management capabilities to different businesses.
Types of Relatedness between Businesses

Copyright © 2019 John Wiley & Sons, Inc.

Problem of operational relatedness:

The benefits from economies of scope may be dwarfed by the administrative costs involved in their exploitation.

RELATEDNESS IN DIVERSIFICATION

35

The Sources of Strategic Relatedness

Between Businesses

Copyright © 2019 John Wiley & Sons, Inc.

RELATEDNESS IN DIVERSIFICATION

Corporate Manage-ment Tasks Determinants of Strategic Similarity
Resource allocation Similar sizes of capital investment projects Similar time spans of investment projects Similar sources of risk Similar general management skills required for business unit managers
Strategy formulation Similar key success factors Similar stages of the industry life cycle Similar competitive positions occupied by each business within its industry
Performance management and control Targets defined in terms of similar performance variables Similar time horizons for performance targets
0

10

20

30

40

50

60

70

1949

1964

1974

1950

1970

1993

Single business

Dominant business

Related business

Unrelated business

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Math Exam Success
Top Class Results
Quick Finance Master
Homework Master
Instant Assignment Writer
Accounting & Finance Specialist
Writer Writer Name Offer Chat
Math Exam Success

ONLINE

Math Exam Success

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$26 Chat With Writer
Top Class Results

ONLINE

Top Class Results

Give me a chance, i will do this with my best efforts

$36 Chat With Writer
Quick Finance Master

ONLINE

Quick Finance Master

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$42 Chat With Writer
Homework Master

ONLINE

Homework Master

I have read your project details. I can do this within your deadline.

$29 Chat With Writer
Instant Assignment Writer

ONLINE

Instant Assignment Writer

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$30 Chat With Writer
Accounting & Finance Specialist

ONLINE

Accounting & Finance Specialist

Give me a chance, i will do this with my best efforts

$30 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Sample case study report in psychology - Internal parts of multimeter - Hcl cmmi level 5 certified - Mkt 421 five step marketing research approach presentation - World book encyclopedia 2005 edition - Army master fitness course - How many clock cycles does the cpu require to act on a command? - Biomedical engineering ethics examples - Advantages and disadvantages of indirect exporting - A multidomestic corporate level strategy is one in which - American musical supply dent and scratch - Zn no3 2 oxidation number - Human services in the criminal justice system trends evaluation - Gcu capstone project examples - Epson eb 1945w manual - Hy dairies case study analysis - Is 11/14 a terminating decimal - Mailbox magazine companion preschool april may 2010 learning centers - Rmit equitable learning plan - Tiger tools a division of drillmore industries - Feedback examples for students - We don't need no education movie - Spaghetti noodle tower challenge - Herero genocide summary - Short-Writing #5 - Eng 225 final film critique paper - Express the following functions in cosine form - Assignment 1 - Y is a nonnegative one digit number - Real Estate Research Paper - What happens when you add zinc to hydrochloric acid - Health Information Management System Week 4 Project - Will carbon tetrachloride sink in sulfuric acid - Chapter 4 physical development in infancy and toddlerhood - Psy 410 week 2 individual assignment - Hyperbole figure of speech definition and examples - Which theorist discovered the “risky shift phenomenon”? - The mum effect results when employees in an organization - Heroes with a mission bumppo and batman answers - Week 5 capstone care plan part 1 - International journal of advanced robotic systems impact factor - Discussion essay on sustainable approach to organizational behaviour - Lame v3 99.3 for windows exe - POL 201 American National Government NO PLAGIARISM PLZ - I need a 1500 words on Instructions - Advantages and disadvantages of level production strategy - Discussion - Quantitative and Qualitative research on the topic(Inferential Statistics in Decision-making) - The islamic jesus mustafa akyol - Lost racing pigeon list - Acme anvils has a newly patented - Cambridge cae vs ielts - Rolex learning center archdaily - A useful tool in gathering information about the competitive environment - In flanders fields poetic techniques - Global student health survey - 13 Corporate Finance Questions, need within 1 hour - Inorganic contaminants present in a sample of water lab report - Nsw health online recruitment system - Services like stitch fix but cheaper - Zpd to lexile conversion chart - 3560 kj to cal - Muslim Molvi 7340613399 OnLine No 1 FaMOUs VashIKaraN sPecIaLIsT IN RajpurSonarpur - Chem Lab - The alaska gold mine case answer - 1950s pop culture worksheet answers - Hw - Microeconomics - 1794 ib16 user manual - Homeostasis amoeba sisters worksheet - Bbc bitesize solids liquids and gases - Colorimetry method a level - General physics 1 module - Superannuation and retirement planning assignment answers - Biowatch - Neptune company produces toys and other items - Assignment: Ethics: Do No Harm - Education - Foreshadowing in and then there were none - Conflicting requirements example - Future trends of management information system - Funny poems about chores - Aoa network diagram - Shunt wound dc motor wiring diagram - Discrete variable in research - Articles using ethos pathos and logos - Sample sop for international business management - Example of internal memo proposal - Orthopedic soap note example - How to make a function continuous at a point - Pooping moose candy dispenser plans - Australia freedom rides moree - Hamlet to be or not to be - How many electrons does calcium ion have - Week 6 Part 2 - Disputed moral issues 3rd edition - Animal abuse essay conclusion - Speed of light in oil - 89.1 dmz mobile circuit mp3 download - Factors that may inhibit capacity utilization