Corporate Strategy and Diversification (105 points)

Corporate diversification strategies raise a wide range of strategic management issues. For this week’s critical thinking assignment, read the case study found in your textbook: Case 16: Manchester City: Building a Multinational Soccer Enterprise, p.554 in the textbook. (p. 572 in PDF)

Remember, a case study is a puzzle to be solved, so before reading and answering the specific case and study questions, develop your proposed solution by following these five steps:

1. Read      the case study to identify the key issues and underlying issues. These      issues are the principles and concepts of the course module, which apply      to the situation described in the case study.
2. Record      the facts from the case study which are relevant to the principles and      concepts of the module. The case may have extraneous information not      relevant to the current module. Your ability to differentiate between      relevant and irrelevant information is an important aspect of case      analysis, as it will inform the focus of your answers.
3. Describe      in some detail the actions that would address or correct the situation.
4. Consider      how you would support your solution with examples from experience or      current real-life examples or cases from textbooks.
5. Complete      this initial analysis and then read the discussion questions. Typically,      you will already have the answers to the questions but with a broader      consideration. At this point, you can add the details and/or analytical      tools required to solve the case.

Case Study Questions:

1. Under      what circumstances can a company extend its competitive advantage from its      home market to an overseas market? Issues concerning the transferability      and replicability of the firm’s competitive advantage are critical here.
2. What      are the distinctive features of City Football’s strategy? What mode of      foreign market entry should City Football adopt? Why? Again, issues of      resources and capabilities and the need for local market knowledge,      distribution, and political and business connections become critical here.
3. What      criteria can companies apply in deciding what new diversification to      pursue and which should City Football apply in deciding?
4. What      changes in the financial structure, organizational structure and      management systems would you recommend?