MGMT

CHAPTER 7 AND 8 1

YIYAO HU

Media Research Paper

MGMT 3900

Running Head: CHAPTER 7 AND 8 0

CHAPTER 7 AND 8 4

10/27/2020

This paper will be handing chapter 7 and chapter 8 together with incorporating data that relates to Uber Company. According to chapter 7, the strategies for competing in global markets talks of why and how organizations decides to go globally and taking precautions and strategies they take in order to be successful in the markets. On the other hand, chapter 8 bases on corporate strategy on diversification and multi-business organization which gives insight on the benefits and the downsides to making diversify and the steps to undertake to be capable of diversifying successfully.

Chapter 7 Strategies for competing in international markets

LO 4 The three main strategic approaches for competing internationally

The forth learning objectives talks of varied strategic approaches under takes in order to be successful in competing globally. The three concepts are multi-domestic strategy, global strategy, and transnational strategy. According to transactional approach, Uber is expected to give services international and bring home feelings in every new nation that it chooses to start. In this case, Uber adjusts to the new market and through the approach it starts new area to offer its services to people. Basing on the strategies that Uber uses, it is well noted that Uber’s organization strategy leans mostly on international strategy instead of multi-domestic. Uber has been using various technologies in order to capture its customers in new markets. This is achieved where millennial trends any program launched by Uber’s organization. Example; Uber is forced to use new branding news in order to trend in the new location and capture people’s attention to be attracted by its services. Usage of powerful branding makes Uber Company to extend its differentiation based competitive benefits.

LO 3 The five major strategic options for entering foreign markets

According to learning objective 3, there are various options based on entering the competitive market internationally. These includes retaining production at home base, license foreign firms to come up with products, start subsidiary in a foreign market and depend on strategic alliances. Basing on the Uber Company it forms many alliances in terms of partnerships in order to make sure there is achieves its goal of competitive benefits in the market.

Example; Uber uses export strategy to get resources from the nation that their certain locations are at against shipping their resources from home nation.

Chapter 8 Corporate Strategy: Diversification and the Multibusiness Company

LO 1 When and how business diversification can enhance shareholder value

Learning objective one talks of different ways that organization can diversify in to be able to be more successful through attaining various streaks of income. An example, there are varied ways to diversify as an organization of the approaches to diversify into something that is connected to your organization.

Another example is that Uber uses joint venture in order to be competitive by working with other organizations offering the same services.

Example 1: there are different ways to diversify as a company one of the ways is to diversify into something that is related to your company or really unrelated. Mcdonalds has owned many different companies completely unrelated to food like red box they owned red box until 2009. They currently own Krispy cream donuts which is one of the most famous donut bakeries in the US. They also currently own other sister companies called Ronald McDonald’s house and McD labs. Mc D labs is a company that specializes in technology for Mcdonald’s restaurants.

LO 5 what four main corporate strategy options a diversified company can employ for solidifying its strategy and improving company performance

In this learning objective, it talks about the four strategies for improving company diversification. These four strategies include stick with the existing business line up, broaden the diversification base, divest and retrench to narrower diversification and reconstruct through acquisitions.

Basing on diversification of business base, Uber employs usage of technology in order to deliver to various areas. As an outcome, this helps it to boost its performance in the market. Another example is based on sticking to narrow diversification in another way organizations solidify their strategy in order to be successful when it comes to business world. Through thus, Uber has achieved success because it has wide range of customers.

Conclusion

The two chapter’s bases on diversification and how organizations requires to analyze strategies to take in order to be successful in a diverse surrounding. In relation to Uber company , dievrsification is likely to improve the company’s performance, however, Uber’s diversification is recently improving and has been since started in the market.

References

Müller, R., Steinert, M., & Teufel, S. (2008). Successful diversification strategies of electricity companies: An explorative empirical study on the success of different diversification strategies of German electricity companies in the wake of the European market liberalization. Energy policy, 36(1), 398-412.