Activity 1: Read chapter 8 "Corporate Strategy: Diversification and the multibusiness company". Chapter 8 moves up one level in the strategy-making hierarchy, from strategy making in a single business enterprise to strategy making in a diversified enterprise. The chapter begins with a description of the various paths through which a company can become diversified and provides an explanation of how a company can use diversification to create or compound competitive advantage for its business units. The chapter also examines the techniques and procedures for assessing the strategic attractiveness of a diversified company’s business portfolio and surveys the strategic options open to already-diversified companies. As a supplemental material, read the case 16 (from your textbook) "Sara Lee Corp. in 2011: Has Its Retrenchment Strategy Benefited Shareholders?". Attached to find the comments of the case based on its questions.
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