Chap 8 Corporate strategic

Hai assalamualaikum everyone..Today  19/11/2013 we continue our lectures about new topic which is corporate strategic. What is corporate strategy??? It means the overall scope and direction of a corporation and the way in which its various business operation work together to achieve particular goals. What can i share today firstly i want to comment what is diversification strategy?? Diversification is a corporate strategy to increase sales volume from new products and new markets. Diversification can be expanding into a new segment of an industry that the business is already in, or investing in a promising business outside of the scope of the existing business. So it have 4 steps which is:-

• Picking new industries to enter and deciding on the means of entry
• Pursuing opportunities to leverage cross-business value chain relationships and strategy fit into competitive advantage
• Establishing investment priorities and steering corporate resources into the most attractive business units
• Initiating actions to boost the combined performance of the cooperation's collection of business.

How about shareholder value? The ultimate justification for diversifying?? Testing whether diversification will ads long term value for shareholder by: 
 a) The industry attractiveness  test
 b) The cost of entry test
 c) The better off test

There are three forms of new business can take: acquisition, internal start up, or joint venture. The choice of which is best depends on the firm's resources and capabilities, the industry's entry barrier's, the important of speed and relative costs. Besides, there are two fundamental approach to diversification which is related business and unrelated business. What is RELATED Diversification?  It means business with match ups along their respective value chain, and then capitalize on the strategic fit by sharing or transferring the resources and capabilities across matching value chain activities to gain competitive advantage. UNRELATED Diversification? Strategy that surrender the competitive advantage potential of strategic fit at the value chain level in return for the potential that can be realized from superior corporate parenting or sharing and transfer of generalized resources and capabilities.

And we also learn how to analyzing good company's diversification strategy in consists of a six step process:

 # Evaluate the long-term attractiveness of the industries into which the firm has diversified.
 # Evaluate the relative competitive strength of each of the company's business units.
 # Check for cross business strategic fit
 # Check whether the firm's resources fit the resource requirement of its present business lineup
 # Rank the performance prospects of the business from best to worst, and determine what the corporate parent's priority should be in allocating resources to its various business
 # Crafting new strategic moves to improve overall corporate performance.

In this chapter also have their own factors motivating the adding of business which is transfer of resources and capabilities to related or complementary business, rapidly changing technology, legislation, or new product innovation in core business, shoring up the market position and competitive capabilities of the firm's present business and extension of scope of the firm's operations into additional country markets.

An independent  company created when a corporate parent divests a business by distributing to its stockholders new shares in the business called as SPINOFF.

Company wide restructuring  or CORPORATE RESTRUCTURING is involve making major changes in a diversified company by divesting some business and acquiring others, so as to put a whole new face on the company's business lineup.

To conclude, Corporate level strategy involves making decisions about which businesses to own and invest in (portfolio strategy) and how to manage or parent the businesses (management/parenting strategy).

Added value logic is a common guiding thought in both portfolio strategy and parenting

strategy. Hence it is a central pillar of corporate -level strategy: companies should aim to be the best parents of the business units they own.

O-SHIMA RESTAURANT

12/11/2013

In this week there have no lectures but student need to attend in this lectures because our lecturer was invited her friend to share with us about her new restaurant and how she achieve the success. As we know, not easy to achieve whatever we want in the world without do anything and i'm sure that everyone have their own failure. The failure make we more enthusiastic and can face all the challenger for the next time..

Our speakers name is Mrs. Asnidar Hanim Yusof and had degree and master based on engineering and she became a successful women after have their own failure. She set up her business with largest business and then the business were collapse. From this experiences she never give up and look for the future and how to start again the business with more careful and look at new strategies. To get the HALAL certificate is so hard because many procedure need to be fulfill and without the strong evidence and reasons the party were reject her request to get the certificate. O-SHIMA Japanese Restaurant located at Kiosk b3, Shah Alam Walk, Persiaran Majlis, 40000 Selangor and she also have their own branch at many state.

The owner wearing black scaft :) so beautiful right??
I was very impressed with her because she never give up and always have in positive side.

There are a lot of variety of foods such as sushi.. So delicious and also have many types of hot dishes. The price is very suitable for all people especially students and what is an important is all of the to make this sushi is HALAL and get the certificate from JAKIM.

Actually i also love this kind of sushi and now i didn't felt worried again to eat because it is HALAL. Mrs Asnidar also share with us why she need to rise again and why she didn't continue her work to become an engineer. This is because she want to look her children grown up in front of her ice and enjoy the beautiful moments of raising her child. I'm sure that all of mother in the world want to look her own child grown up together and it is up to the individual how to implement their child. She also said that she loves to eat and her husband like to cook a variety types of food and make his wife(Mrs Asnidar) to taste all of it.

In a nutshell, i want to advised to all my friends and also especially for myself do not easily give up, always be in positive side and try to get the best solution before make some action. After that, don't forget to pray and  relying to ALLAH because at lastly we find our success even a thousand of years..Believe it.. INSYALLAH..