CHAPTER 8
DIVERSIFICATION, MERGERS & STRATEGIC PLANNING
I. Merger and Acquisition Strategy as a part of long-range planning process.
  A. Alternative Approaches to Strategy

B. Alternative Strategy Methodologies

C. Alternative Frameworks employed in Strategy Formulation

II. Stanley Foster Reed Approach
  A. Wheel of Opportunity

B. Fit Chart

C. Financial Analysis

III. Boston Consulting Group
  A. Experience Curve

B. Product Life Cycle

C. Product Portfolio Balance

IV. Michael Porter Approach
  A. Three parts: (1) Select attractive Industry

(2) Develop a competitive advantage through cost leadership, product differentiation, or focus.

(3) Develop attractive value chains.
 

B. Attractive industry (1) Entry barriers high

(2) Suppliers and buyers have weak bargaining power.

(3) Few substitute products/services available.

(4) Stable rivalry among competitors.

                                        B. Value Chain Analysis

                    V. Formulating Competitive Strategy through Matrix Analysis

A. Product-market mix

B. Competitive-position matrix

C. Growth-share matrix.

D. Strength-market attractiveness matrix.

E. Global strategy.