Diversification Strategy Essay

Critical Thinking: Corporate Strategy and Diversification

Corporate diversification strategies raise a wide range of strategic management issues. For this week’s critical thinking assignment, read the case study found in your textbook: Case 16: Manchester City: Building a Multinational Soccer Enterprise, p.554 (in the textbook).

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:

1. Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study.
2. Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current module. 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.
3. Describe in some detail the actions that would address or correct the situation.
4. Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
5. 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:

1. Under what circumstances can a company extend its competitive advantage from its home market to an overseas market? Issues concerning the transferability and replicability of the firm’s competitive advantage are critical here.
2. What are the distinctive features of City Football’s strategy? What mode of foreign market entry should City Football adopt? Why? Again, issues of resources and capabilities and the need for local market knowledge, distribution, and political and business connections become critical here.
3. What criteria can companies apply in deciding what new diversification to pursue and which should City Football apply in deciding?
4. What changes in the financial structure, organizational structure and management systems would you recommend?

Your well-written paper should meet the following requirements:

• Be 6-7 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 Saudi Electronic University academic writing standards and APA style guidelines.
• Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles unless the assignment calls for more.
• It is strongly encouraged that you submit all assignments into the Turnitin Originality Check before submitting it to your instructor for grading. If you are unsure how to submit an assignment into the Originality Check tool, review the Turnitin Originality Check—Student Guide for step-by-step instructions.
• Review the grading rubric to see how you will be graded for this assignment.
• For Your SuccessThis week’s module focuses on the role of diversification in corporate strategy. Critical thinking related to diversification and successfully managing strategy can be invigorating because it is both complex and challenging. Diversification strategies raise a wide range of strategic management issues. For this assignment, you will explore facets of diversification, including motives, competitive advantage, and strategic planning.Your Critical Thinking Assignment is due this week. Review the assignment early in the week and contact your instructor if you have any questions or concerns. Please note that your instructor will be hosting a required Live Session this week.Learning Outcomes
  1. Understand the relationship between diversification decisions and a company’s resources and capabilities.
  2. Assess a company’s potential to establish competitive advantage through deploying the concepts of economies of scope, transaction costs, costs of entry, and relatedness.
  3. Compare circumstances where diversification does and does not create value.
  4. Understand the relationship between diversification decisions and a company’s resources and capabilities.

  Readings

  • Chapter 12 in Contemporary Strategy Analysis
  • Chapter 12 PowerPoint slides Chapter 12 PowerPoint slides – Alternative Formats in Contemporary Strategy Analysis
  • Srinivasan, S., Thenmozhi, M., & Vijayaraghavan, P. (2020). Performance Implications of Diversification Strategies during Institutional Transformations: An Emerging Market Study. Asia-Pacific Management Accounting Journal, 15(3), 1.

  Recommended:

  • Khan, S. U., & Rizwan, M. F. (2020). Ownership Concentration, Owner Identity and Technological Innovation Propensity: Moderating Role of Corporate Diversification. Pakistan Journal of Commerce & Social Sciences, 14(4), 913–961.