Restructuring

Corporate Strategy
Fall 2008

Lecture 1

Introduction to Corporate Strategy with an Historical Perspective
Dr. Olivier Furrer
Office: TvA 1-1-11, Phone: [phone] e-mail: [e-mail]
Office Hours: only by appointment
Lecture 1 © Furrer 2002-2008

1

Discussion Themes
1. Introduction
(See Collis and Montgomery, 1997, Ch. 1)

– The Need for Corporate Strategy
– What is Corporate Strategy?
– A Framework for Corporate Strategy

3. Corporate Strategy Analytical Tools
(See Collis and Montgomery, 1997, A1)

– Organization Structure and
Diversification
– Portfolio Planning
– Value-Based Strategy
– Generic Corporate Strategies
– Resource-Based View
Lecture 1 © Furrer 2002-2008

2. An Historical Perspective
(See Grant, 2002)

–
–
–
–
–

Origins of the Modern Corporation
The Multidivisional Corporation
Postwar Patterns of Diversification
The Conglomerates
Downsizing, Outsourcing, and
Restructuring
– Diversification in Emerging-Market
Economies
– Beyond the Trends

2

Corporate-Level Strategy

“Corporate strategy is the way a company creates value through the configuration and coordination of its multimarket activities”

Collis and Montgomery, 1997, p. 5

Lecture 1 © Furrer 2002-2008

3

The Need for Corporate Strategy
• Most industrial activity in developed countries is carried out by large corporations which compete in more than one market.
• In the United States, 60% of assets are controlled by multibusiness companies (Villalonga, 2003). In Europe, the percentage is about the same (Pedersen and Thomsen, 1997).
• On average these firms engaged in over 10 different lines of business. • Due to the dominant role these firms play in economic activity, it is likely that most of you, regardless of their chosen career paths, will at some point either work for, advise, or compete with a multibusiness corporation.
Lecture 1 © Furrer 2002-2008

4

The Need for Corporate Strategy
• The nature