Author: Constantinos Markides
Publisher: MIT Press
ISBN: 9780262133111
Category : Business & Economics
Languages : en
Pages : 228
Get Book Here
Book Description
This work examines the causes and consequences of the "refocusing" phenomenon, where companies have stopped diversifying and begun focusing once more on their core product lines. Coverage includes a discussion of the effects of refocusing on market value, profitability and organizational structure.
Author: John T. Scott
Publisher: Cambridge University Press
ISBN: 0521430151
Category : Business & Economics
Languages : en
Pages : 284
Get Book Here
Book Description
Exploring hypotheses about purposive diversification and ensuing economic performance, this study offers insights into the debate about cooperation versus competition among firms.
Author: Matthias Knecht
Publisher: Springer Science & Business Media
ISBN: 3658026774
Category : Business & Economics
Languages : en
Pages : 365
Get Book Here
Book Description
The decision to diversify lies at the core of corporate strategy and is one of the most important decisions for top management. Matthias Knecht introduces a new perspective on corporate diversification that extends the academic discussion and reveals substantial new insights with regards to one of the most pressing questions in strategic management: what makes a diversification strategy successful? The author introduces the dynamism of industries as the dominant force in the firm’s environment that influences the organization on all levels. Due to strategic, organizational, and managerial similarities of businesses competing in similar dynamic environments, synergistic benefits and superior economic performance can be realized through the combination of dynamic-related businesses in the corporate portfolio. This study provides a quantitative, multidimensional operationalization of industry dynamism and an in-depth assessment of the dynamism of a wide range of industries. At the core of the study lies the investigation of the performance impact of dynamic-related diversification strategies. The results provide new insights into successful portfolio construction strategies in the face of today’s dynamic environments.
Author: Gonul Colak
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
Get Book Here
Book Description
At any point in time a firm faces three restructuring choices: diversify, refocus, or do nothing. This study analyzes the causes and the consequences of these actions in a unified framework using the appropriate methodologies. Various factors, such as firm's characteristics and multinational nature, its industry's characteristics, its exchange and index inclusion, and divested (or acquired) segment(s)' industry conditions, are considered as the determinants of the diversifying and the refocusing decisions. The estimation results from the corresponding multinomial logit model suggest that refocusing occurs generally due to firm-specific reasons, and diversification due to outside factors, such as industry and economic conditions. Added or dropped segment's industry profitability, its relationship to the core business of the firm, and its relatedness to the businesses of the conglomerate's other segments have a nontrivial effect on either decision. In a related analysis, the paper explicitly models and estimates the valuation consequences that are sustained by the firm after it undertakes a refocusing or a diversification action. To isolate the changes in firm's value that are due to these decisions only, a 2SLS estimation is used to control for endogeneity that arises because the factors that affect a firm's value are likely to have also induced the firm to make the corresponding decision. The novelty of my approach is in its inclusion of variables measuring the consequences due to both actions, the diversification and the refocusing, in the same valuation equation. Contrary to some earlier findings, I find no evidence of 'diversification discount' or 'refocusing premium.' The choice of this paper to analyze all corporate restructuring decisions in a unified framework yields valuable business insights into the reasons for undertaking such corporate events.
Author: Lee Perry
Publisher:
ISBN:
Category :
Languages : en
Pages : 17
Get Book Here
Book Description
We propose a new application of the resource-based view (RBV) that is more consistent with Penrose's (1959) original framework. We use that framework to study the relationship between diversification and refocusing strategies and economic performance. We propose that the RBV may be enhanced by the explicit recognition of Penrose's two classes of resources, administrative and productive resources. This distinction suggests a focus on the administrative decisions of managers, including the multiple decisions associated with diversification and refocusing strategies, which lead to economic performance. Second, we argue that RBV theory is a theory about extraordinary performers or outliers, not averages. Therefore, the statistical methods used in applying the theory must account for individual firm differences, rather than based on means, which statistically neutralize firm differences. We introduce a novel Bayesian Hierarchical method to examine actions taken by new CEOs and the resulting effects on economic performance over time. The unique feature of this Bayesian method is it allows us to make meaningful probability statements about the diversification and refocusing strategies of individual firms.
Author: Frithjof Pils
Publisher: Springer Science & Business Media
ISBN: 3834981818
Category : Business & Economics
Languages : en
Pages : 229
Get Book Here
Book Description
Frithjof Pils uses multiple statistical techniques to examine the true nature of the relationships between diversification strategies and accounting-based, market-based, and growth-based performance. The author shows implications for the interpretation of past research, the design of future research including the use of meta-analysis methodologies, as well as management practice.
Author: Nicholas C. Mangos
Publisher:
ISBN:
Category : Diversification in industry
Languages : en
Pages : 12
Get Book Here
Book Description
Author: Edwin Tiffany Hawks
Publisher:
ISBN:
Category : Diversification in industry
Languages : en
Pages : 322
Get Book Here
Book Description
Author: John Cantwell
Publisher: Routledge
ISBN: 1134450494
Category : Business & Economics
Languages : en
Pages : 381
Get Book Here
Book Description
And conclusionsFurther bibliography; Index.
Author: Ian Jones
Publisher: Springer
ISBN: 0230379796
Category : Business & Economics
Languages : en
Pages : 239
Get Book Here
Book Description
The Role of Business Ethics in Economic Performance is a major edited collection of papers on why and how the conduct of business behaviour effects its commercial success. The book offers a comprehensive introduction to the issues looking at the lessons from economic theory, the institutional setting and the supply and demand side conditions which are forcing firms to take ethics seriously. Lord Eatwell considers the ethical foundations of the market economy. Mark Casson analyses the economic importance of leaders, while Simon Deakin and Frank Wilkinson empirically examine the role of contractual obligation in the UK. Adrian Cadbury and Norman Barry examine voluntary institutions and government's importance in setting ethics. Maurie Cohen and Russell Sparkes look at the ethical consumers and ethical investors increasing influence on business conduct. Finally Clive Wright and Neil Hood examine the internal organisation of national and transnational firms which increasingly build an ethical dimension into their corporate decision making.
