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Consider the various corporate-level strategies discussed in the text (concentration, growth, integration, diversification, investment reduction). What...

Consider the various corporate-level strategies discussed in the text (concentration, growth, integration, diversification, investment reduction). What is the relationship among these various strategies? Are they mutually exclusive? Are they complementary? Explain.

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Integrated diversification is of 2 types: Vertical and horizontal.

In vertically integrated diversification, firms opt to engage in businesses that are related to
the existing business of the firm. The firm moves vertically within the same process.
It moves forward or backward in the vertical chain.

Horizontal integrated diversification: Through the acquisition of one or more
similar business operating at the same stage in the chain that is going into complementary products or taking over competitors’ products.

• Concentric diversification: Concentric diversification is related
diversification.
The new business is linked to the existing
businesses through process, technology or marketing.

There are benefits of synergy with the current operations.

Growth Strategy:
Here, the firm looks for significant growth-maybe within the current
businesses it can either be through by entering new business that are related to existing businesses or by entering new businesses that are unrelated to existing businesses.

Investment reduction strategies:
The firm reduces some of the activities in a given business or drops the business as such through liquidation or sellout.


These strategies are not mutually exclusive. They are complementary to each other.
For example in a conglomerate business like Nestle Inc.
Nestle can grow its specific business and at the same time do Investment reduction in another business.

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