MAN 4720-017 AND 4720-018: GLOBAL STRATEGY AND POLICY
Prepared for: Professor Harry Schwartz
Applied Concepts Paper
Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice
Table of Contents
The purpose of this paper is to help me to fully understand and expand my knowledge of the concepts four in our textbook. By performing research about recent business world activities, I will be able to link the terms learned in the lecture in order to get the full picture. Although I chose terms that are found in both chapter 6 and chapter 7, most of my terms come from chapter 7, which talks about corporate strategy. Our textbook Strategic Management and Business Policy textbook by Thomas L. Wheelen and J. David Hunger is a great source of information for anyone interested in learning more about business. According to our textbook, the three key issues that corporate strategy deals with are: 1.
Directional Strategy - The firm’s overall orientation toward growth, stability, or retrenchment. 2.
Portfolio analysis - The industries or markets in which the firm competes through its products and business units. 3.
Parenting strategy - The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units.
From the readings, I chose the terms that I found most interesting. The concepts that I chose from my readings are acquisition, joint venture, licensing agreements, long-term contracts, and strategic alliance. After doing extensive research, I came upon recent articles that have helped me to understand the book and help me to incorporate the knowledge that I have gained in this class with the real world. In this paper I fully explain how the terms learned in the textbook relate to recent articles.
1. Delphi Automotive closes on FCI unit acquisition, by the Associated Press, Published on Friday October 26, 2012 This article announces the completion of an acquisition deal that was announced in May of 2012 by the company Delphi Automotive. This deal was for the acquisition of FCI motorized vehicles unit, which manufactures auto connection systems. The deal cost Delphi Automotive 765 million euros ($987.5 million). Delphi Automotive has its headquarters in Troy, Michigan. It was saved by the United States Government in 2005. Since then, the company has recuperated; however, it has done so by decreasing its costs, such as, massive layoffs and downsizing its manufacturing business. With this merger, Delphi expects to increase its future earnings gain an approximate $0.24 per share. 2. Clariant AG : Clariant and Wilmar establish Joint Venture for amines and selected amines derivatives, by Thompson Reuters ONE, Published on Friday, October 26, 2012 This article announces the joint venture between two well established companies: Clariant Ltd. and Wilmar International Limited. Clariant Ltd. is a specialty Chemicals Company based out of Swtizerland. It is the parent company to over 100 companies worldwide. As of December 2011, the company had an approximate 22,100 employees. Clariant specializes in growing its business by partnering or acquiring a variety of firms that will help the company maintain profitability and create a steady growth. Wilmar International Limited is a leading competitor in the agribusiness field of Asia. The company was formed in 1991 and it is based out of Singapore. Some of Wilmar’s business activities include, oil palm cultivation, oilseeds crushing, edible oils. In addition, the article goes into detail of how the companies will...
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