Strategic Fit and Diversification in Related Businesses Read the overview below and complete the activities that follow. The purpose of diversification is to build shareholder value. Diversification builds shareholder value when a diversified group of businesses can perform better under the auspices of a single corporate parent than they would as independent, stand-alone businesses. The goal is to achieve not just a 1 + 1 = 2 result, but rather to realize important 1 + 1 = 3 performance benefits. Whether getting into a new business has the potential to enhance shareholder value hinges on whether a company’s entry into that business can pass the attractiveness test, the cost-of-entry test, and the better-off test. Entry into new businesses can take any of three forms: acquisition, internal start-up, or joint venture. The choice of which is best depends on: the firm’s resources and capabilities, the industry’s entry barriers, the importance of speed, and the relative costs. There are two fundamental approaches to diversification: into related businesses and into unrelated businesses. The rationale for related diversification is to benefit from strategic fit: Diversify into businesses with matchups along their respective value chains, and then capitalize on the strategic fit by sharing or transferring the resources and capabilities across matching value chain activities to gain competitive advantage. Unrelated diversification strategies surrender the competitive advantage potential of strategic fit at the value chain level in return for the potential that can be realized from superior corporate parenting or the sharing and transfer of generalized resources and capabilities. An outstanding corporate parent can benefit its businesses through (1) providing high-level oversight and making available other corporate resources, (2) allocating financial resources across the business portfolio, and (3) restructuring underperforming acquisitions. Case: See if you can identify the value chain relationships that make the businesses of the following companies related in competitively relevant ways. In particular, you should consider whether there are cross-business opportunities for (1) transferring skills and technology, (2) combining related value chain activities to achieve economies of scope, and/or (3) leveraging the use of a well-respected brand name or other resources that enhance differentiation. Bloomin’ Brands Outback Steakhouse Carrabba’s Italian Grill Roy’s Restaurant (Hawaiian fusion cuisine) Bonefish Grill (market-fresh fine seafood) Fleming’s Prime Steakhouse & Wine Bar L’Oréal Maybelline, Lancôme, Helena Rubinstein cosmetics L’Oréal, Garnier, and SoftSheen-Carson hair care products Redken, Matrix, L’Oréal Professional, Kiehl’s, and Kérastase professional hair care and skin care products Ralph Lauren, Yves Saint Laurent, and Giorgio Armani fragrances La Roche-Posay, Vichy Laboratories, Dermablend, and SkinCeuticals dermocosmetics Johnson & Johnson Baby products (powder, shampoo, oil, lotion) Band-Aids and other first-aid products Women’s health and personal care products Neutrogena, Lubriderm, and Aveeno skincare products Nonprescription drugs (Tylenol, Motrin, Pepcid AC, Mylanta, Benadryl) Prescription drugs Oral health care (Listerine, Rembrandt) Nutritionals (Splenda, Lactaid) Prosthetic and other medical devices Surgical and hospital products Vision care (Acuvue contact lenses, Visine)
List and describe the cross-business opportunities for transferring skills or technology that exist with the business lineups of Bloomin' Brands, L'Oreal, and Johnson & Johnson.
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Read and review the Module 2 content before responding to this discussion. Please choose one of the questions below and provide a 3-5 sentence response. What are the differences between a summary, a direct quote, and a paraphrase? Provide an example of all three - a summary, a direct quote, and a paraphrase. Where can academic sources be found to assist you in locating valid outside sources for academic writing? What resources are available to help students avoid plagiarism and how can these resources help students uphold academic integrity?
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What are the organizational structure of MNCs? Describe them by the company case study and draw the figures of structure.
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Respond to the following in a minimum of 175 words:
Once the strategies are in place, employees must support the strategies. Discuss the critical soft skills for success in global roles. What are the methods for acquiring employees with those “soft skills?
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Thomas Sowell's (1987) writings from his book, A Conflict of Visions: Ideological Origins of Political Struggles, speaks to the significant differences associated with constrained and unconstrained visions.
Please take some time to consider the following - if someone retains a constrained vision, how important are cultural traditions? How does someone with an unconstrained vision view the role of cultural traditions?
And finally, why is this important to a student of critical thinking? Consider when you are interacting with another person - trying to sort out their position, beliefs, etc.
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Identify three voluntary benefits an employer can provide to employees, describing the benefit and indicating why it is important to employees. Indicate how these benefits can assist and organization is attracting and/or retaining employees.
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analysis of differences between US national companies. USA at the competitive level, marketing, national and international trade laws, social media influence among China's international companies at the competitive level, marketing, domestic and international trade laws.
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Effective managers stay abreast of current HR topics. Here are a few....... global HRM, labor relations, social media, whistleblower rules, e-HRM/self-service the knowledge economy, outsourcing pros and cons, managing four different generations in the workforce, increasing age of the workforce, employee privacy, the glass ceiling, implications of baby boomer retirements, immigration, social responsibility, elder care, executive pay, and alternative work arrangements. Select three topics from the list above (or choose other current topics that are not included). Research each topic. For each of your three chosen topics, provide a bulleted list of four or five relevant points that you believe have significance for line managers.
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Assume you are asked the following question during a job interview: What is your greatest strength? How would you answer? Come up with ONE adjective that describes your greatest strength (e.g., dependable, flexible, conscientious) and write a success story that proves you have this strength.
Begin with the statement: My greatest strength is that I am ___________________. For example.....
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Organizational Behavior:
Motivation: What do you think are the most important motivational needs for the majority of people? Do you think your needs differ from those of most people?
(Please don't copy other answers. Thank you.)
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a PowerPoint-style presentation with a pitch script in the Notes section outlining your pitch for the use of design thinking to solve a problem. Be sure to include the following, with any other relevant information that you think is essential to an effective pitch:
Identify the potential customers or end-users that would be positively affected if the organization adopted the more formal design thinking process.
Explain whether design thinking could be effectively integrated into the organization, and why?
How would you convince stakeholders within the organization of its value?
Be sure to draw on the articles by Brown (2008) and Brown and Anthony (2011) from this week’s Resources to support your conclusions.
a PowerPoint-style presentation with a pitch script in the Notes section outlining your pitch for the use of design thinking to solve a problem. Be sure to include the following, with any other relevant information that you think is essential to an effective pitch:
Identify the potential customers or end-users that would be positively affected if the organization adopted the more formal design thinking process.
Explain whether design thinking could be effectively integrated into the organization, and why?
How would you convince stakeholders within the organization of its value?
Be sure to draw on the articles by Brown (2008) and Brown and Anthony (2011) from this week’s Resources to support your conclusions.
In: Operations Management
Wilson Publishing Company produces books for the retail market.
Demand for a current book is expected to occur at a constant annual
rate of 7,400 copies. The cost of one copy of the book is $13.50.
The holding cost is based on an 18% annual rate, and production
setup costs are $150 per setup. The equipment with which the book
is produced has an annual production volume of 25,000 copies.
Wilson has 250 working days per year, and the lead time for a
production run is 15 days.
What is the length of a production run in days? (Round your answers
to two decimal places.
Wilson Publishing Company produces books for the retail market.
Demand for a current book is expected to occur at a constant annual
rate of 7,400 copies. The cost of one copy of the book is $13.50.
The holding cost is based on an 18% annual rate, and production
setup costs are $150 per setup. The equipment with which the book
is produced has an annual production volume of 25,000 copies.
Wilson has 250 working days per year, and the lead time for a
production run is 15 days.
What is the cycle time? (Round your answers to two decimal
places.
Wilson Publishing Company produces books for the retail market.
Demand for a current book is expected to occur at a constant annual
rate of 7,400 copies. The cost of one copy of the book is $13.50.
The holding cost is based on an 18% annual rate, and production
setup costs are $150 per setup. The equipment with which the book
is produced has an annual production volume of 25,000 copies.
Wilson has 250 working days per year, and the lead time for a
production run is 15 days.
What is the minimum cost production lot size? (Round your answers
to two decimal places.
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,400 copies. The cost of one copy of the book is $13.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. What is the reorder point? (Round your answers to the whole number.)
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,400 copies. The cost of one copy of the book is $13.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. What is the reorder point? (Round your answers to the whole number.)
In: Operations Management
Nada Dairy is contracted to receive daily 60,000 kg of ripe tomatoes at 7 cents per kg from which it produces canned tomato juice, tomato sauce, and tomato paste. The canned products are packaged in 24-can cases. A can of juice uses 1 kg of fresh tomatoes, a can of sauce uses 1/2 kg, and a can of paste uses 3/4 kg. The company’s daily share of the market is limited to 2000 cases of juice, 5000 cases of sauce, and 6000 cases of paste. The wholesale prices per case of juice, sauce, and paste are SAR 21, SAR 9, and SAR 12, respectively.
a. [2 Marks] Develop a mathematical model that determine the optimum daily production program for the company.
b. [1 Mark] Solve it using software and show the results.
c. [2 Mark] If the price per case for juice and paste remains fixed as given in the problem, use sensitivity analysis to determine the unit price range that the company should charge for a case of sauce to keep the optimum product mix unchanged.
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