Horizontal Integration: makes use of current capabilities by development into activities that are competitive with or directly complementary to a company’s present activities. An example would be a TV company that moved into film production.
Vertical Integration: occurs when a company expands backwards and forwards within its existing value network and thus becomes its own supplier or distributor. Example Canned Milk/Dairy Farm. Example Cloth/Shirts making.
Portfolio managers: Services in financial disciplines; purchasing & acquiring companies; improve their performance; keep their own costs low; provide few central services
Synergy managers: Pursue economies of scope, shared use of resources, need to overcome: cost involved in sharing, impact of self-interest in SBUs, incompatibility of systems & cultures among SBUs, variation in local conditions
Parental developer: deploying its specific competencies to aid SBUs, must be able to do it, external capabilities may be bought if parent cannot do so cost effectively, understanding about SBUs
BCG Matrix High Low High Low Market Share Growth By KMI Star Question mark Cash Cow Dog
GEBS Business Strength Market Attractiveness By KMI Invest for growth Invest selectively for growth Develop for income Invest selectively and build Develop selectively for income Harvest or divest Develop selectively build on strengths Harvest Divest