San Miguel Corporation on Diversification San Miguel Corporation‚ one of the top manufacturers of food and beverages in the Philippines on a journey to diversify into energy‚ mining‚ and other utilities. Introduction When we hear the name‚ “San Miguel Corporation”‚ the first things that come to our mind are food and drinks‚ especially alcoholic beverages namely‚ San Miguel Beer. A decade ago‚ people see San Miguel Corporation as a strong player of Food‚ Beverages and Packaging Market
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References: Channon‚ D. (n.d.). Conglomerate strategy. Retrieved from http://www.blackwellreference.com/public/tocnode?id=g9780631233176_chunk_g978140511828610_ss13-1 Economy Watch. (2010‚ June 30). Steel industry trends. Retrieved from http://www.economywatch.com/world-industries/steel-industry/trends
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Planning for Business Operations (Part 2) (Week 5) 20-Jul-14 BE2601 Instructors: Kumaran Rajaram (Course Coordinator)‚ Adeline Tay‚ Lam Chow Loon and Alan Goh S1 AY2014-15 Prepared by Dr. Kumaran Rajaram 20-Jul-14 Seminar Outline for Week 5 Course Format Title Remarks Interactive Seminar & Discussion Planning for Business Operations Continuation from Week 4 (60 mins.) Case Studies/ Group Activities • Different ways to compete in soft drink Business
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395‚ Iss. 8678; pg. 13 Abstract (Summary) Most emerging countries have a penchant for highly diversified conglomerates. India’s Tata Group‚ which accounts for almost 6% of the country’s GDP‚ has subsidiaries in carmaking‚ agricultural chemicals‚ hotels‚ telecommunications and consulting. Reliance Industries’ range sprawls from petrol products and clothes to fresh food. But such diversification is not confined to giant organisations. China is full of small and medium-sized companies that have fingers
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STRATEGIC ANALYSIS AND CHOICE INTRODUCTION Strategic analysis and choice are done at two levels‚ namely‚ corporate and business levels. Strategists at the two levels unlike those at the operational level can choose what strategies to adopt i.e. “doing the right things”. Hence‚ effectiveness in realizing organizational goals is critical at these levels of strategic management. Operational strategy‚ on the other hand‚ focuses on “doing things right” i.e. properly operationalizing or
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what businesses the firm should compete and how corporate headquarter should manage those businesses. Lonrho’s profile in 1996 included Agriculture‚ Sugar‚ General Trade‚ Hotels‚ Manufacturing‚ Mining&Refining and Motor&Equipment. The level of diversification was clearly high and the firm was pursuing a unrelated strategy‚ with less than 70% of revenues that came from the dominant business (Mining ) and without common links between businesses. The corporation was divided into country groups or related
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profits of the parent company and thus lower tax bills. Thus‚ firms have a reason to buy firms that have accumulated tax losses. • Diversification: One of the reasons for conglomerate mergers is diversification of risk. There are two types of risks associated with businesses- systematic and unsystematic risk. Systematic variability cannot be removed by diversification and hence mergers are not able to eliminate this risk. Though‚ unsystematic risk can be spread through mergers. • Managerial Motives:
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specialization. This tool‚ crossing products and markets of a company‚ facilitates decision making. The Ansoff matrix offers four strategies to achieve the objectives. Penetration of the market ; Extension of the market ; New products ; Diversification. Golden rules Opportunity = the matrix provides not only the opportunity to expand on an existing market but one can also explore the possibility to withdraw from the market or find new markets. Risk = each strategy will have a different
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IN 2012‚ SAMSUNG‚ with $248 billion in revenues‚ was one of the largest conglomerates globally and the largest chaebol1 in South Korea. A rough comparison would be the U.S. conglomerate General Electric‚ which had $147 billion in revenues in the same year. Established in 1938 by Lee Byung-chul as a trading company selling noodles and dried seafood‚ Samsung has since diversified into various industries‚ such as electronics‚ chemicals‚ shipbuilding‚ financial services‚ and construction. In particular
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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
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