Key insides from corporate strategy

图片发自App

图片发自App

Got the whole picture of corporate strategy, which is about getting corporate advantage and synergies through diversification, divesture and organization structure.

Divesture could be done by synergy analysis. Even there is synergy between different businesses, the company can still divest the business which has better parent.

Three dimensions to analyze the organizational structure: function, product and geography. Decisions are made based on the synergy required.

Most M&A cases are not successful

Increasing diversity helps make a better decision. The in class text on guessing weight illustrates the theory.

Organizations have formal and informal structures. Informal structures are playing important roles.

Synergies can be realized at four levels depending on the needs. Connection，combination, customization and consolidation.