Strategic Alternatives / Recommendation

Question 1

What are some reasons for acquisitions?

Answer 1

1. Increasing market power
2. Overcoming entry barriers through cross-border acquisitions
3. Cost of new product development and increased speed to market
4. Increased diversification
5. Reshaping the firm’s competitive scope
6. Learning to develop new capabilities

Question 2

What are some business-level strategies?

Answer 2

1. Cost leadership
2. Differentiation
3. Focused cost-leadership / differentiation
4. Integrated cost leadership / differentiation

Question 3

What are some corporate-level strategies?

Answer 3

1. Vertical integration
2. Diversification
3. Acquisition or merger
4. Downscoping or restructuring

Question 4

What are some corporate-level international strategies?

Answer 4

1. Global
2. Multidomestic
3. Regional
4. Transnational

Question 5

What are some international entry strategies?

Answer 5

1. Exporting
2. Licensing
3. Strategic alliances
4. Acquisitions

Question 6

How to go about the strategic alternatives section?

Answer 6

1. Come up with 2-3 feasible strategic alternatives for the company that addresses problem statement + external + internal analysis
2. Fit with the case
3. Pros and cons of each one

Question 7

How to go about the recommendations section?

Answer 7

1. Restate strategy briefly
2. Why it’s the best choice
3. Compare it to future business and corporate level strategy
4. Implementation plan (short-term, mid-term, long-term)