Your well-written paper should meet the following requirements:

• Be 7 pages in length, which does not include the title page or required reference page, which are never a part of the content minimum requirements.

• Use  APA style guidelines.

• Support your submission with course material concepts, principles, and theories from the textbook and at least (FOUR ) scholarly, peer-reviewed journal articles unless the assignment calls for more.

——————————————————————————————————————————–

Corporate diversification strategies raise a wide range of strategic management issues. For this week’s critical thinking assignment, read the case study (Attached) (Case 19): Google Is Now Alphabet—But What’s the Corporate Strategy?

Remember, a case study is a puzzle to be solved, so before reading and answering the specific case and study questions, develop your proposed solution by following these five steps:

1. Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.
2. Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
3. Describe in some detail the actions that would address or correct the situation.
4. Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
5. Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.

Case Study Questions:

1. WhatYour well-written paper should meet the following requirements:
   • Be 7 pages in length, which does not include the title page or required reference page, which are never a part of the content minimum requirements.
   • Use  APA style guidelines.
   • Support your submission with course material concepts, principles, and theories from the textbook and at least (FOUR ) scholarly, peer-reviewed journal articles unless the assignment calls for more.

   ——————————————————————————————————————————–

   Corporate diversification strategies raise a wide range of strategic management issues. For this week’s critical thinking assignment, read the case study (Attached) (Case 19): Google Is Now Alphabet—But What’s the Corporate Strategy?

    

   Remember, a case study is a puzzle to be solved, so before reading and answering the specific case and study questions, develop your proposed solution by following these five steps:

   1. Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.
   2. Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
   3. Describe in some detail the actions that would address or correct the situation.
   4. Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
   5. Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.

   Case Study Questions:

   1. What is Google’s corporate strategy? Does Google have a clear vision of what it wants to become?
   2. Use Porter’s Essentials Test (Chapter 12  ”  Attached to have idea “) to determine if this strategy creates competitive advantage. If so, how? If not, why not?
   3. Look beyond the conventional sources of synergy and consider complementarities, bargaining power, and rivals. What threats does Google face?
   4. Does Google need to refocus? How should Google delineate its corporate boundaries and which businesses, or products would you recommend abandoning or divesting, if any?

      CONTEMPORARY STRATEGY ANALYSIS

      tenth edition

      Robert M. Grant

      John Wiley & Sons Ltd., 2019

       

       

       

      Chapter 12

      Diversification

      Strategy

       

       

      • Introduction: The Basic Issues
      • Motives for Diversification
      • Competitive Advantage from Diversification
      • Diversification and Performance
      • The Meaning of Relatedness in Diversification

      Diversification Strategy

      Copyright © 2019 John Wiley & Sons, Inc.

      OUTLINE

       

      27

       

       

       

      INDUSTRY

      ATTRACTIVENESS

      COMPETITIVE

      ADVANTAGE

       

       

      Superior profit derives from two sources:

      Diversification decisions involve these same two issues:

      • How attractive is the industry to be entered?
      • Can the firm achieve a competitive advantage?

      Core Issues in Diversification Decisions

      Copyright © 2019 John Wiley & Sons, Inc.

      RETURN ON CAPITAL

      > COST OF CAPITAL

      INTRODUCTION: THE BASIC ISSUES

       

      United States

      United Kingdom

      %

      Diversification Strategies of US and UK Corporations during the 20th Century

      Copyright © 2019 John Wiley & Sons, Inc.

      INTRODUCTION: THE BASIC ISSUES

       

      IMPLICATIONS

      FOR

      DIVERSIFICATION

      STRATEGY

      MANAGEMENT

      GOALS

       

      STRATEGY

      TOOLS AND

      CONCEPTS

      Growth

      Making diversification profitable

      Creating shareholder value

      1960 1970 1980 1990 2000 2018

      • Diversification by established firms
      • Emergence of conglomerates
      • Boom in M&A

      • Core business focus
      • Divestments, and spin-offs
      • Leveraged buyouts

      • Financial

      analysis

      • M-form

      structures

      • Corporate

      planning

      • Economies of

      scope

      • Portfolio

      planning models

      • Modern

      financial theory

      • Shareholder

      value

      • Transaction cost

      analysis

      • Core competence
      • Dominant logic

      Corporate advantage

      • Product bundling and customer solutions
      • Alliances
      • Growth options

      • Parenting advantage
      • Real options
      • Demand-side economies of scope
      • Tech platforms

      • Emphasis on

      related

      diversification

      • Quest for

      synergy

       

       

       

       

       

       

       

       

      The Evolution of Diversification Strategies, 1960-2018

      INTRODUCTION: THE BASIC ISSUES

      Copyright © 2019 John Wiley & Sons, Inc.

      *

       

      1

       

       

       

       

       

      • The desire to escape stagnant or declining industries a powerful motives for diversification (e.g. tobacco, oil, newspapers).
      • But, growth in the interests of managers not shareholders
      • Growth-seeking diversification (esp. by acquisition) tends to destroy shareholder value

      • Diversification reduces the variance of profit flows
      • But, doesn’t create value for shareholders—they can

      hold diversified portfolios of securities. [Capital Asset

      Pricing Model shows that diversification only lowers

      unsystematic risk not systematic risk]

      • For diversification to create shareholder value, then

      bringing putting different businesses under common

      ownership must increase their total profitability

      Motives for Diversification

      Copyright © 2019 John Wiley & Sons, Inc.

      GROWTH

       

      RISK SPREADING

      VALUE CREATION

      MOTIVES FOR DIVERSIFICATION

       

      31

       

       

       

       

      For diversification to create shareholder value, it must meet three tests:

      1. The Attractiveness Test: diversification must be directed towards attractive industries (or those with e the potential to become attractive).

      2. The Cost of Entry Test : the cost of entry must not capitalize all future profits.

      3. The Better-Off Test: either the new unit must gain competitive advantage from its link with the company, or vice-versa. (i.e. some form of “synergy” must be present)

      Diversification and Shareholder Value: Porter’s Three Essential Tests

      Copyright © 2019 John Wiley & Sons, Inc.

      MOTIVES FOR DIVERSIFICATION

       

      32

       

       

       

       

      Sources of Competitive

      Advantage from Diversification

      Copyright © 2019 John Wiley & Sons, Inc.

      `COMPETITIVE ADVANTAGE FROM DIVERSIFICATION

      ECONOMIES OF SCOPE	Sharing tangible resources (e.g. research labs, distribution systems) across multiple businesses
      Sharing intangible resources (e.g. brands, technology) across multiple businesses
      Transferring functional capabilities (e.g. marketing, product development) across businesses
      Applying common general management capabilities to different businesses

      ECONOMIES FROM INTERNALIZING TRANSACTIONS	Economies of scope not a sufficient basis for diversification—must be supported by transaction costs in markets for resources
      Diversified firm can avoid external transactions by operating internal capital and labor markets
      Diversified firm has better information on resource characteristics than external markets

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      *

      The Findings of Empirical Research

      Copyright © 2019 John Wiley & Sons, Inc.

      DIVERSIFICATION AND PERFORMANCE

      Do diversified firms outperform specialized firms?	No consistent relationship Evidence of a ∩-shaped relationship: dn. first increases profitability, then further dn. reduces profitability (increased complexity?) McKinsey & Co. identify benefits from moderate dn.—especially for firms that have run out of growth opportunities Question of direction of causation: does dn. drive profitability, or vice-versa?
      What type of diversification is most profitable? —Related dn. vs. unrelated dn.	Most studies show related dn. outperforms unrelated dn. Related dn. offers greater synergies—but also imposes higher management costs But what is “related dn.”? Businesses can be related in many different ways (e.g. LMVH, GE, Virgin group)

       

       

       

       

       

       

       

       

       

      Economies of scope in diversification derive from two types of relatedness:

      • Operational Relatedness—synergies from sharing resources across businesses (common distribution facilities, brands, joint R&D)
      • Strategic Relatedness—synergies at the corporate level deriving from the ability to apply common management capabilities to different businesses.

       

       

      Types of Relatedness between Businesses

      Copyright © 2019 John Wiley & Sons, Inc.

      Problem of operational relatedness:

      The benefits from economies of scope may be dwarfed by the administrative costs involved in their exploitation.

      RELATEDNESS IN DIVERSIFICATION

       

      35

       

       

       

      The Sources of Strategic Relatedness

      Between Businesses

      Copyright © 2019 John Wiley & Sons, Inc.

      RELATEDNESS IN DIVERSIFICATION

      Corporate Manage-ment Tasks	Determinants of Strategic Similarity
      Resource allocation	Similar sizes of capital investment projects Similar time spans of investment projects Similar sources of risk Similar general management skills required for business unit managers
      Strategy formulation	Similar key success factors Similar stages of the industry life cycle Similar competitive positions occupied by each business within its industry
      Performance management and control	Targets defined in terms of similar performance variables Similar time horizons for performance targets

       

       

       

       

       

       

       

       

       

      0

      10

      20

      30

      40

      50

      60

      70

      1949

      1964

      1974

      1950

      1970

      1993

      Single business

      Dominant business

      Related business

      Unrelated business

   is Google’s corporate strategy? Does Google have a clear vision of what it wants to become?

2. Use Porter’s Essentials Test (Chapter 12  ”  Attached to have idea “) to determine if this strategy creates competitive advantage. If so, how? If not, why not?
3. Look beyond the conventional sources of synergy and consider complementarities, bargaining power, and rivals. What threats does Google face?
4. Does Google need to refocus? How should Google delineate its corporate boundaries and which businesses, or products would you recommend abandoning or divesting, if any?

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Electropic LLC is a respected and profitable website design and hosting company in Colossal Corporation’s technology group. Melissa Aldredge has been a project manager at Electropic LLC for several years and was recently considered for promotion to a senior project manager position. Ultimately, the promotion was awarded to another long-term employee, June Pyle. June and Melissa have a history of one-upping each other and sharing an internal rivalry within the company.

Melissa recently reported internally that she had learned that June, who was given the promotion over her, had never finished her MBA degree. All of June’s business cards have “MBA” after her name, and the signature line of her email reads “June Pyle, MBA.”

Electropic LLC’s policy manual states that potential employees must submit transcripts for all degrees listed on their resumes. However,  this requirement was not in place 10 years ago when June Pyle was hired. June has a history of stellar performance and was promoted not because of her MBA, but because of her consistently exemplary work. June has received excellent performance evaluations during her time at Electropic LLC, and her leadership has led to increased revenue as well as positive press for the company. Her record of success is what led to her promotion.

As a result of Melissa’s report, the director of human resources sent an email to all employees who were hired prior to the policy change requiring transcript validation, asking that they provide transcripts to validate their credentials. June did not respond to the director’s request for transcripts and was called into the director’s office. In a very tense and tearful interview, June confessed to the director that she does not have an MBA. She admitted that she was 12 credits away from completing her degree, but when her dad got sick, she had to drop out. She said that she really needed a job to support her family and she put the MBA on her resume hoping it would help her find a job. She shared that she always intended to go back to school but became so busy with work that she didn’t have time. Once she was hired, she felt that there was no turning back and she had to keep the lie going by placing “MBA” in her email signature line and on her business cards.

An MBA was not a requirement for the assistant project specialist job June was hired for 10 years ago, but four years ago, it was made a requirement for the senior project manager position she holds now. Two of the current senior project managers do not have MBA degrees because they were promoted before this requirement was in place.

Vice President Dodger has asked you to write a memo with your recommendations on how human resources should handle this issue. June has a record of excellence with Electropic LLC, and her superiors would be unhappy to lose her; however, ethical practice and the law must be considered here as well.

————————–

Vice President Dodger has provided you with the Electropic LLC case file (above), which details recent events at Electropic LLC, one of Colossal’s technology companies. He has asked you to analyze the legal and ethical aspects of the case. The ethical aspects of the situation seem complex, and you realize that you need a structured way to think through the various resolutions to the case and their implications. You know that there are many different schools of ethical thought and a variety of frameworks or approaches for analyzing ethical problems, but you decide that the best approach to this particular situation is Badaracco’s right versus right framework (attached).

Use the Badaracco’s right vs. right framework prepare a legal analysis report. In your report be sure to:

* APA-formatted in-text citations and an APA-formatted reference list (do not format the body of the report using APA style, just the reference list). See references and citations for  details.

* detailed analysis of all four questions and three tests of the Badaracco framework;

* include an analysis of the legal issues

* a specific recommendation on what actions, if any, HR should take based on your legal and ethical analysis and conclusions.

* Report should be 6-8 pages long, not including references/title page

Use the learning topics provided as main references, but use supporting documents/references to support your answers.

Comments from professor:  We begin this week with an analysis of ethical and legal issues in the Electropic LLC case.
Let me give you some specific advice on addressing this case in Project 3. You must use the Badaracco framework. After reviewing all the material, take Badaracco’s ethical analysis and address his four questions and his three tests. The questions should be applied to different possible situations. For example, the company could terminate June, could allow her to keep her promotion, or could demote her but allow her to keep a job of some kind. So, the important thing is do the complete analysis and particularly not jump to an early conclusion. I am not interested in what your common sense says – I am interested in the analysis of the questions and tests that Badaracco raises as applied to different factual patterns. So you would go through each question one by one.

Course Resource

Electropic LLC

Notice: Contains Confidential Information

Electropic LLC is a respected and profitable website design and hosting company in Colossal Corporation’s technology group. Melissa Aldredge has been a project manager at Electropic LLC for several years and was recently considered for promotion to a senior project manager position. Ultimately, the promotion was awarded to another long-term employee, June Pyle. June and Melissa have a history of one-upping each other and sharing an internal rivalry within the company.

Melissa recently reported internally that she had learned that June, who was given the promotion over her, had never finished her MBA degree. All of June’s business cards have “MBA” after her name, and the signature line of her email reads “June Pyle, MBA.”

Electropic LLC’s policy manual states that potential employees must submit transcripts for all degrees listed on their resumes. However,  this requirement was not in place 10 years ago when June Pyle was hired. June has a history of stellar performance and was promoted not because of her MBA, but because of her consistently exemplary work. June has received excellent performance evaluations during her time at Electropic LLC, and her leadership has led to increased revenue as well as positive press for the company. Her record of success is what led to her promotion.

As a result of Melissa’s report, the director of human resources sent an email to all employees who were hired prior to the policy change requiring transcript validation, asking that they provide transcripts to validate their credentials. June did not respond to the director’s request for transcripts and was called into the director’s office. In a very tense and tearful interview, June confessed to the director that she does not have an MBA. She admitted that she was 12 credits away from completing her degree, but when her dad got sick, she had to drop out. She said that she really needed a job to support her family and she put the MBA on her resume hoping it would help her find a job. She shared that she always intended to go back to school but became so busy with work that she didn’t have time. Once she was hired, she felt that there was no turning back and she had to keep the lie going by placing “MBA” in her email signature line and on her business cards.

An MBA was not a requirement for the assistant project specialist job June was hired for 10 years ago, but four years ago, it was made a requirement for the senior project manager position she holds now. Two of the current senior project managers do not have MBA degrees because they were promoted before this requirement was in place.

Vice President Dodger has asked you to write a memo with your recommendations on how human resources should handle this issue. June has a record of excellence with Electropic LLC, and her superiors would be unhappy to lose her; however, ethical practice and the law must be considered here as well.

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