1. Dr. Laura Whitcomb BUS 4970 Fall 2018
Corporate Strategy
Dr. Laura Whitcomb
BUS 4970
Fall 2018

2. Levels of Strategy
Corporate Level
Business Level
Functional Level

3. Corporate Strategy Generic Alternatives/Grand Strategies
Stability
Expansion
Retrenchment
Combination

4. Expansion/Retrenchment Generic Choices
How?
Internal
External
Alliances
What?
Vertical integration
Horizontal integration
Diversification: related/unrelated

5. Nestle’s Corporate Strategy
2001 Acquired Purina pet food
2002/5 Acquired Dreyer’s Ice Cream
2006 Acquired Novartis nutrition business & Jenny Craig diet products
2007 Acquired Gerber baby foods
WSJ 7/23/07
From Swiss retailers to US institutional investor pressures
29% of L’Oreal

6. Wall Street Journal 2/18/17

7. Unilever & Kraft Mergers & Acquisitions WSJ 2/18/17

8. ATT & TimeWarner Merger WSJ 11/22/17

9. For AT&T and Time Warner, It’s Finally D-Day. WSJ. 6/12/18.

10. Expansion/Retrenchment Generic Choices
How?
Internal
External
Alliances
What?
Vertical integration
Horizontal integration
Diversification: related/unrelated

11. Vertical Integration

12. PepsiCo Related Diversification Global Divisions, 2016
CEO: Indra Nooyi
Exec. VPs: Franchise, Legal, HR, CFO, Operations, R&D, Communications
North America Beverages
Pepsi, Gatorade, Mountain Dew, Naked Juice, Lipton & Starbucks partnerships, Tropicana
Frito-Lay North America
Lays, Doritos, Stacy’s, Rold Gold, Tostitos
Quaker Foods North America
Chewy Granola Bars, Medleys & Life cereals, Popped Crisps
Latin America
Sabritas, Gamesa
Europe Sub-Saharan Africa
Wimm-Bill-Dann (Russia); Marbo
Asia, Middle East & North Africa

13. Synergy – Disney 1957 The force is strong in this firm. The Economist

15. Disney & Fox seal deal. WSJ. 12/15/17.

16. Disney nears pact to acquire assets from 21st Century Fox. WSJ

17. Disney deal for Fox would end era of the ‘Big Six’ studios. WSJ

18. United Technologies Conglomerate Structure (2018)
CEO: Gregory Hayes
VPs: HR, Digital & Information, Operations & Strategy, Technology, General Counsel, Financial, Government Relations, Science & Technology, Communications
Otis Elevator
Pratt & Whitney
Aerospace Systems
Climate, Controls & Security

19. 3M (2018) Conglomerate/Unrelated Diversification
CEO: Inge Thulin
Sr VPs: Business Development & Marketing-Sales;
Legal Affairs & General Counsel;
HR; Financial; Supply Chain; R&D & Technology;
Corporate Communications & Enterprise Services; Business Transformation & IT
Executive VPs: COO & Business Groups listed below:
Industrial
Tapes, abrasives, adhesives, specialty materials and filtration systems
Health Care
Medical and oral care products, drug delivery, health information systems.
Consumer
Post-it, Scotch, Scotch-Brite, Filtrete, O-Cel-O, Nexcare
Electronics & Energy
Electronic devices, telecommunication networks, renewable energy
Safety & Graphics
Personal protective equipment, safety & security products, track & trace solutions 
International Operations

20. GE Unrelated Diversification Nov 2014 Organization Chart
CEO: Jeffrey Immelt
Corporate Staff: PR; Legal; HR; Finance; Global Research
Global Growth & Operations
Capital
Appliances & Lighting
Healthcare
Aviation
Transportation
Power & Water
Oil & Gas
Energy Mgmt

21. GE to give up rail unit in $11 billion deal. WSJ. 5/22/18

22. A shrunken GE plans more unit sales. WSJ. 6/27/18

23. Corporate Culture Defined
Collectively shared values and norms of an organization’s members. Values = what is considered important Norms = appropriate employee attitudes & behavior

24. Functions of Corporate Culture
Conveys a sense of identity
Generates employee commitment
Adds to organizational stability