Would you opt to pursue related diversification

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Reference no: EM132164149

Is your company going to operate in an international market? Why or why not ? If it is use the Exercise for Simulation participants on p. 211 to lay out your plan.

Answer the question in the Exercise for Simulation participants on p. 256 as they relate to your company. Company is Organic Coffee and Beverages in Orangeburg , SC.

EXERCISE FOR SIMULATION PARTICIPANTS

The following questions are for simulation participants whose companies operate in an international market arena. If your company competes only in a single country, then skip the questions in this section.

To what extent, if any, have you and your co-managers adapted your company's strategy to take shifting exchange rates into account? In other words, have you undertaken any actions to try to minimize the impact of adverse shifts in exchange rates?

To what extent, if any, have you and your co-managers adapted your company's strategy to take geographic differences in import tariffs or import duties into account?

Which one of the following best describes the strategic approach your company is taking in trying to compete successfully on an international basis?

Multidomestic or think-local, act-local approach.

Global or think-global, act-global approach.

Transnational or think-global, act-local approach.

Explain your answer and indicate two or three chief elements of your company's strategy for competing in two or more different geographic regions.

EXERCISE FOR SIMULATION PARTICIPANTS

In the event that your company has the opportunity to diversify into other products or businesses of your choosing, would you opt to pursue related diversification, unrelated diversification, or a combination of both? Explain why.

What specific resources and capabilities does your company possess that would make diversifying into related businesses attractive?

Indicate what kinds of strategic-fit benefits could be captured by transferring these resources and competitive capabilities to newly acquired related businesses.

If your company opted to pursue a strategy of related diversification, what industries or product categories could it diversify into that would allow it to achieve economies of scope? Name at least two or three such industries or product categories, and indicate the specific kinds of cost savings that might accrue from entry into each.

If your company opted to pursue a strategy of unrelated diversification, what industries or product categories could it diversify into that would allow it to capitalize on using its present brand name and corporate image to good advantage in the newly entered businesses or product categories?

Name at least two or three such industries or product categories, and indicate the specific benefits that might be captured by transferring your company's umbrella brand name to each.

Reference no: EM132164149

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