Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. CHAPTER 6 Corporate-Level Strategy Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. LEARNING OBJECTIVES Studying this chapter should provide you with the strategic management knowledge needed to: 6-1 Define corporate-level strategy and discuss its purpose. 6-2 Describe different levels of diversification achieved using different corporate-level strategies. 6-3 Explain three primary reasons firms diversify. 6-4 Describe how firms can create value by using a related diversification strategy. 6-5 Explain the two ways value can be created with an unrelated diversification strategy. 6-6 Discuss the incentives and resources that encourage diversification. 6-7 Describe motives that can encourage managers to over diversify a firm. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Chapter Introduction (slide 1 of 2) • A corporate-level strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. • A corporate-level strategy: • Is used as a means to grow revenues and profits • Focuses on diversification • Is expected to help the firm earn above-average returns by creating value • Is concerned with two key issues: 1. In what product markets and businesses the firm should compete 2. How corporate headquarters should manage those businesses Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Chapter Introduction (slide 2 of 2) • Product diversification concerns: • The scope of the markets and industries in which the firm competes • How managers buy, create, and sell different businesses to match skills and strengths with opportunities presented to the firm • Diversification: • Is successful when it reduces variability in the firm’s profitability as earnings are generated from different businesses • Provides firms with the flexibility to shift their investments to markets where the greatest returns are possible rather than being dependent on only one or a few markets Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-1 Levels of Diversification • Diversified firms vary according to their level of diversification and the connections between and among their businesses. • There are five categories of businesses according to increasing levels of diversification: 1. 2. 3. 4. 5. Single business Dominant business Related constrained Related linked Unrelated Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Figure 6.1 Levels and Types of Diversification Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-1a Low Levels of Diversification • There are two types of strategies a firm with a low level of diversification can use: 1. Single-business diversification strategy • The firm generates 95 percent or more of its sales revenue from its core business area. 2. Dominant-business diversification strategy • The firm generates between 70 and 95 percent of its total revenue within a single business area. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-1b Moderate and High Levels of Diversification (slide 1 of 2) • A firm uses a related diversification strategy when: • It generates more than 30 percent of its revenue outside a dominant business. • Its businesses are related to each other in some manner. • There are two types of related diversification strategies: 1. Related constrained diversification strategy • The links between the diversified firm’s businesses use similar sourcing, throughput, and outbound processes. • A related constrained firm shares resources and activities across its businesses. 2. Related linked diversification strategy • The firm’s portfolio of businesses have only a few links between them. • A related linked firm concentrates on transferring knowledge and core competencies between its businesses. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-1b Moderate and High Levels of Diversification (slide 2 of 2) • A highly diversified firm that has no relationships between its businesses follows an unrelated diversification strategy. • Commonly, firms using this strategy are called conglomerates. • Unrelated firms make no effort to share activities or transfer core competencies between or among their businesses. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-2 Reasons for Diversification • A corporate-level diversification strategy can be used to: • Increase a firm’s value by improving its overall performance • Value is created when the strategy allows a company’s businesses to increase revenues or reduce costs while implementing their business-level strategies. • Have neutral effects • Reduce a firm’s value Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Table 6.1 Reasons for Diversification (slide 1 of 2) Value-Creating Diversification • Economies of scope (related diversification) • Sharing activities • Transferring core competencies • Market power (related diversification) • Blocking competitors through multipoint competition • Vertical integration • Financial economies (unrelated diversification) • Efficient internal capital allocation • Business restructuring Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Table 6.1 Reasons for Diversification (slide 2 of 2) Value-Neutral Diversification • • • • • • • Antitrust regulation Tax laws Low performance Uncertain future cash flows Risk reduction for firm Tangible resources Intangible resources Value-Reducing Diversification • Diversifying managerial employment risk • Increasing managerial compensation Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3 Value-Creating Diversification: Related Constrained and Related Linked Diversification • The company using the related diversification strategy wants to develop and exploit economies of scope between its businesses. • Economies of scope are cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses. • Firms seek to create value from economies of scope through two basic kinds of operational economies: 1. Sharing activities (operational relatedness) 2. Transferring corporate-level core competencies (corporate relatedness) Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Figure 6.2 Value-Creating Diversification Strategies: Operational and Corporate Relatedness Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3a Operational Relatedness: Sharing Activities • Firms can create operational relatedness by sharing either: • A primary activity • Example: Inventory delivery systems • A support activity • Example: Purchasing practices • Sharing activities is usually associated with the related constrained diversification corporate-level strategy. • Activity sharing: • Is costly to implement and coordinate • May create unequal benefits for the divisions involved • Can lead to fewer managerial risk-taking behaviors Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3b Corporate Relatedness: Transferring of Core Competencies • Corporate-level core competencies are complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise. • Firms using the related linked diversification strategy can create value by transferring core competencies in at least two ways: 1. Because the expense of developing a core competence has already been incurred in one of the firm’s businesses, transferring it to a second business eliminates the need for that business to allocate resources to develop it. 2. Because intangible resources are difficult for competitors to understand and imitate, the unit receiving a transferred corporate-level competence often gains an immediate competitive advantage over its rivals. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3c Market Power (slide 1 of 3) • Market power may be gained by firms successfully using a related constrained or related linked strategy. • Market power exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3c Market Power (slide 2 of 3) • Firms can foster market power through multipoint competition and vertical integration. • Multipoint competition exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets. • Vertical integration exists when a company produces its own inputs (backward integration) or owns its own source of output distribution (forward integration). Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3c Market Power (slide 3 of 3) • Vertical integration allows a firm to gain market power by developing the ability to: • • • • • Save on its operations Avoid sourcing and market costs Improve product quality Possibly protect its technology from imitation by rivals Potentially exploit underlying capabilities in the marketplace • Vertical integration has limitations. • • • • Internal transactions may be expensive and reduce profitability. Bureaucratic costs may be present. Substantial investments in specific technologies are required, reducing a firm’s flexibility. Changes in demand create capacity balance and coordination problems. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-3d Simultaneous Operational Relatedness and Corporate Relatedness • The ability to simultaneously create economies of scale by sharing activities (operational relatedness) and transferring core competencies (corporate relatedness): • Is difficult for competitors to understand and imitate • Is very expensive to undertake • If the cost of realizing both types of relatedness is not offset by the benefits created, the result is diseconomies. • Often results in discounted assets by investors • It can be difficult for investors to identify the value that is created by the firm that shares both activities and core competencies. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-4 Unrelated Diversification (slide 1 of 2) • Firms do not seek operational relatedness or corporate relatedness when using the unrelated diversification corporate-level strategy. • Financial economies are cost savings realized through improved allocations of financial resources based on investments inside or outside the firm. • An unrelated diversification strategy can create value through two types of financial economies: 1. Efficient internal capital market allocation 2. Asset restructuring Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-4 Unrelated Diversification (slide 2 of 2) • Firms in emerging economies often use an unrelated diversification strategy. • A drawback for firms using the unrelated diversification strategy in a developed economy is that competitors can imitate financial economies more easily than they can replicate the value gained from the economies of scope developed through operational relatedness and corporate relatedness. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-4a Efficient Internal Capital Market Allocation (slide 1 of 2) • In a market economy, capital markets are believed to efficiently allocate capital. • Efficiency results as investors take equity positions with high expected future cash-flow values. • Capital is allocated through debt as shareholders and debt holders try to improve the value of their investments by taking stakes in businesses with high growth and profitability prospects. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-4a Efficient Internal Capital Market Allocation (slide 2 of 2) • In large diversified firms, the corporate headquarters office distributes capital to its businesses to create value for the overall corporation. • Those in a firm’s corporate headquarters generally have access to detailed and accurate information regarding the performance of the company’s portfolio of businesses; thus, they have the best information to make capital distribution decisions. • Because it has less accurate information, the external capital market may fail to allocate resources adequately to highpotential investments. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-4b Restructuring of Assets • Financial economies can be created when firms learn how to create value by: 1. Buying assets at a low cost 2. Restructuring the assets 3. Selling the assets at a price that exceeds their cost in the external market • Buying, restructuring, and then selling service-based assets for a profit in the external market is difficult. • This is because technology firms and service-based companies have relatively few tangible assets that can be restructured to create value and sell profitably. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5 Value-Neutral Diversification: Incentives and Resources • Diversification is sometimes pursued for valueneutral reasons. • Different incentives to diversify sometimes exist. • The quality of the firm’s resources may permit only diversification that is value neutral rather than value creating. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5a Incentives to Diversify (slide 1 of 5) • Incentives to diversify come from both the external environment and a firm’s internal environment. • External incentives include: • Antitrust regulations • Tax laws • Internal incentives include: • • • • Low performance Uncertain future cash flows The pursuit of synergy Reduction of risk for the firm Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5a Incentives to Diversify (slide 2 of 5) Antitrust Regulation and Tax Laws • In the 1960s and 1970s: • Antitrust laws prohibiting mergers that created increased market power (via either vertical or horizontal integration) were stringently enforced. • Most mergers were “conglomerate” in character. • In the 1980s and early 1990s: • Merger constraints were relaxed. • More and larger horizontal mergers (acquisitions of target firms in the same line of business) occurred. • In the early 2000s: • Antitrust concerns emerged again. • Mergers received more scrutiny. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5a Incentives to Diversify (slide 3 of 5) • In the 1960s and 1970s, dividends were taxed more heavily than were capital gains. • As a result, shareholders preferred that firms use free cash flows (liquid financial assets for which investments in current businesses are no longer economically viable) to buy and build companies in highperformance industries. • The 1986 Tax Reform Act created an incentive for shareholders to retain funds for purposes of diversification by: • Reducing the individual ordinary income tax rate from 50 to 28 percent • Changing the capital gains tax to treat capital gains as ordinary income • At one time, acquisitions were an attractive means for securing tax benefits, but the Financial Accounting Standards Board (FASB) reduced some of the incentives to make acquisitions by eliminating: • • The “pooling of interests” method to account for an acquired firm’s assets The write-off for research and development in process Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5a Incentives to Diversify (slide 4 of 5) Low Performance • Research shows that: • • Low returns are related to greater levels of diversification. An overall curvilinear relationship may exist between diversification and performance. Uncertain Future Cash Flows • Diversification may be an important defensive strategy: • • • As a firm’s product line matures or is threatened During a financial downturn For family firms competing in mature or maturing industries • Diversifying into other product markets or into other businesses can reduce the uncertainty about a firm’s future cash flows. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Figure 6.3 The Curvilinear Relationship between Diversification and Performance Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5a Incentives to Diversify (slide 5 of 5) Synergy and Firm Risk Reduction • Synergy exists when the value created by business units working together exceeds the value that those same units create working independently. • Synergy produces joint interdependence among businesses that constrains the firm’s flexibility to respond, which may lead the firm to: • • Become risk averse and uninterested in pursuing new product lines that have potential but are not proven Constrain its level of activity sharing • Either decision may lead to further diversification. • • Operating in environments that are more certain will likely lead to related diversification into industries that lack potential. Constraining the level of activity sharing may produce additional, but unrelated, diversification, where the firm lacks expertise. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-5b Resources and Diversification • A firm must have the types and levels of resources and capabilities needed to successfully use a corporate-level diversification strategy. • A firm’s ability to create value through diversification is influenced by the degree to which resources are: • • • • Valuable Rare Difficult to imitate Nonsubstitutable • Both tangible and intangible resources facilitate diversification. • However, intangible resources are more flexible in facilitating diversification. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-6 Value-Reducing Diversification: Managerial Motives to Diversify (slide 1 of 2) • Managerial motives to diversify beyond valuecreating and value-neutral levels include: • The desire for increased compensation • Reduced managerial risk • Research evidence shows that diversification and firm size are highly correlated. • As firm size increases, so does: • Executive compensation • Social status Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. 6-6 Value-Reducing Diversification: Managerial Motives to Diversify (slide 2 of 2) • Managerial motives to diversify can lead to overdiversification and a subsequent reduction in a firm’s ability to create value. • Managerial tendencies to over diversify may be held in check by: • • • • Governance mechanisms (board of directors) Monitoring by owners Executive compensation practices The market for corporate control • Evidence suggests, however, that many top-level executives seek to be good stewards of the firm’s assets and avoid diversifying the firm in ways that destroy value. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Summary (slide 1 of 2) • The level of diversification with the greatest potential positive effect on performance is based partly on the effects of the interaction of resources, managerial motives, and incentives on the adoption of particular diversification strategies. • The greater the incentives and the more flexible the resources, the higher the level of expected diversification. • Financial resources (the most flexible) should have a stronger relationship to the extent of diversification than either tangible resources or intangible resources (the most inflexible). Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Summary (slide 2 of 2) • Firms can improve their strategic competitiveness when they pursue a level of diversification that is appropriate for: • Their resources (especially financial resources) and core competencies • The opportunities and threats in their country’s institutional and competitive environments Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Figure 6.4 Summary Model of the Relationship between Diversification and Firm Performance Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. APPENDIX NOTE TO INSTRUCTOR: Choose from the following questions (also found in the text at the end of the chapter) to conduct in-class discussions around key chapter concepts. Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What is corporate-level strategy and why is it important? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What are the different levels of diversification firms can pursue by using different corporatelevel strategies? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What are three reasons firms choose to diversify their operations? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • How do firms create value when using a related diversification strategy? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What are the two ways to obtain financial economies when using an unrelated diversification strategy? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What incentives and resources encourage diversification? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part. Discussion: • What motives might encourage managers to over diversify their firm? Hitt, Ireland, Hoskisson, Strategic Management: Competitiveness & Globalization: Concepts & Cases, 13e. © 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or part.
