MBA《战略管理》课件06

1、Chapter 6MissionObjectivesExternalAnalysisInternalAnalysisStrategicChoiceStrategyImplementationCompetitiveAdvantageThe Strategic Management ProcessCorporate LevelStrategyWhich Businessesto Enter?Vertical Integration纵向一体化Corporate Level Strategy公司层面战略Corporate level strategy should create value:2)suc

2、h that businesses forming the corporate wholeare worth more than they would be under independent ownership3)that equity holders cannot create throughportfolio investing a corporate level strategy should createsynergies that are not available in equitymarketsvertical integration = value chain economi

3、es1)such that the value of the corporate whole increases公司层面战略经营多项业务还是单一业务What is Vertical Integration?何为纵向一体化奶酪( Cheese)Where your pizza comes fromDairy Farmers(milk)牛奶Crop Farmers农作物种植Seed Companies种子公司Food Distributors食品分销商Pizza Chains披萨End Consumer终端消费者What is Vertical Integration? Cheese)Dairy

4、Farmers(milk)Crop FarmeSeed & CompaniesFood DistributorsPizza ChainsEnd ConsumerBackwardVerticalIntegration后向一体化ForwardVerticalIntegration前向一体化Value Chain Economies价值链(milk)Food DistributorsBackwardVerticalIntegrationForwardVerticalIntegrationCheese)the focal firm is able tocreate synergy with theot

5、her firm(s) 创造协同 the focal firm is able tocapture above normal economic returns 获得超平均回报(avoid perfect competition)cost reduction成本降低revenue enhancement销售额增加Competitive AdvantageIf a vertical integration strategy meets theVRIO criteriaIs it Valuable?Is it Rare?Is it costly to Imitate?Is the firm Orga

6、nized to exploit it?it may create competitive advantage.Value of Vertical IntegrationMarket vs. Integrated Economic Exchangeeconomic exchange should be conducted in the formthat maximizes value for the focal firm markets and integrated hierarchies are forms in whicheconomic exchange can take placeth

7、us, firms assess which form is likely to generatemore value Integration makes sense when the focal firm can capture more value than a market exchange providesValue of Vertical IntegrationThree Value ConsiderationsLeverageCapabilitiesExploitFlexibilityManageOpportunismfirm capabilitiesmay be sourceso

8、f competitiveadvantage inother businessesif not, then dontintegrate exchangeopportunismmay be checkedby internalizing (TSI)internalizing mustbe less costly thanopportunisminternalizing isusually lessflexibleflexibility is prized whenuncertainty ishighRarity of Vertical IntegrationIntegration vs. Non

9、-Integrationa firms integration strategy may be rare becausethe firm integrates or because the firm does notintegratethus, the question of rareness does notdepend on the number of forms observeda firms integration strategy is rare or common withrespect to the value created by the strategyExample: To

10、yotas Choice Not to Integrate SuppliersImitability of Vertical IntegrationForm vs. Functionthe form, per se, is usually not costly to imitatethe value-producing function of integration maybe costly to imitate, if:the integrated firm possesses resourcecombinations that are the result of:historical un

11、iquenesscausal ambiguitysocial complexitysmall numbers prevent further integrationcapital requirements are prohibitiveImitability of Vertical IntegrationModes of Entryacquisition and internal development are alternativemodes of entry into vertical integrationstrategic alliances can be viewed as a su

12、bstitute forvertical integrationwithout the costs of ownershipthus, one firm may acquire a supplier while acompetitor could imitate that strategy throughinternal developmentin both cases, the boundaries of the firm wouldencompass the new businessOrganizing Vertical IntegrationFunctional Structure (U

13、-Form)AccountingFinanceMarketingHREngineeringConflictConflictOriginalBusinessNewBusinessOriginalBusinessNewBusinessNewBusinessNewBusinessNewBusinessOriginalBusinessOriginalBusinessOriginalBusinessCooperationCooperationCEOs RoleOrganizing Vertical IntegrationManagement ControlsWhat needs to be contro

14、lled in a vertically integratedfirm? cooperation and competition among and betweenfunctionsthe integration of new businesses into the existing businessmanagers efforts to achieve the desired valuechain economiestime horizon of managersOrganizing Vertical IntegrationManagement ControlsBudgetsBoardCom

15、mitteesseparating strategic andoperational budgetsstrategic: inputs& outputsoperational: outputsprovide oversight and direction to managershelp ensure that strategicdirection is maintainedThese mechanisms focus management attentionon achieving value chain economiesOrganizing Vertical IntegrationComp

16、ensationSalaryCash Bonus: IndividualStock Grants: IndividualCash Bonus: GroupStock Grants: GroupStock Options: IndividualStock Options: GroupOpportunismLeveragingCapabilitiesExploitingFlexibilityCooperationTime HorizonIntegrationInternational ExpansionCost(Capital at Risk)ControlExportingLicensingFr

17、anchisingStrategic AllianceGreenfield InvestmentLowHighHighAcquisitionThe Cost Control TradeoffVerticallyIntegratedNot Vertically IntegratedSomewhatVerticallyIntegratedSummaryVertical Integrationmakes sense when value chain economiescan be created and capturedmay allow a firm to leverage capabilitiesmay be a response to the threat of opportunismand uncertaintyas a form of exchange per se, is not rare norcostly to imitate SummaryVertical Integrationis an importa