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Firms that sold off related units in which resource sharing was a possible source of economies of scope have been found to produce lower returns than those that sold off businesses unrelated to the firm’s core business

In order to meet and exceed customers’ expectations over time, firms must:

In large diversified firms, corporate headquarters distributes capital to its businesses to create value for the overall corporation

A firm uses a corporate-level diversification strategy for a variety of reasons, all of which have to do with ways to create value

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm’s operations in order to consistently provide the same positive experience for customers.

Companies in emerging markets frequently use the unrelated diversification strategy because of the absence of a “soft infrastructure” in those markets

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets

A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles is serving high-end fare such as hamburgers made from grass-fed cattle, escargot, and crème brulee, at less expensive prices than sit-down restaurants.  This illustrates a focused differentiation strategy

Changing consumer needs are illustrated by Starbucks’ enabling consumers to have an experience and design their own drinks rather than just a cup of coffee