Respond to 6 peers. Asking questions, stating if your agree or disagree and why.

Respond to 6 peers. Asking questions, stating if your agree or disagree and why.
Response one: I enjoyed reading your post for this week’s discussion. You mentioned unrelated diversification strategies in Part II as a memorable learning experience. You noted the advantages such a diversification can have for a cooperation. However, this type of strategy can also have its disadvantages, like lacking the knowledge and network needed for that new domain, higher costs (through lesser knowledge), or harming your brand when taking on unrelated territories (Linkedin, 2024). At what point do you think is it worth for an organization to take on the risks associated with unrelated diversification?
Thanks for sharing your thoughts with us this week.
Best,
Susanne
Reference:
Linkedin (2024). What are the key factors to consider when choosing between related and unrelated diversification? www.linkedin.com. Retrieved April 19, 2024,
from https://www.linkedin.com/advice/0/what-key-factors-consider-when-choosing-between-1e.
Response two: How exactly did Ford Motor Company come to negotiate this alliance with Google? What all does Google get out of the alliance? This sounds like a very useful partnership for your organization so kudos to them on securing that! What has been the most significant development for Ford Motor Company that has come out of this alliance?
Response three: Great discussion, I think it is cool that Ford has created an alliance with Google, and it appears it has benefited them greatly. I wonder who reached out to who first? Are other car producing companies also working with Google or is this Ford’s competitive advantage. When talking about diversifying, are you seeing that Ford is providing more diversity among their vehicles and the “extra’s” available or do you believe they are trying to appeal to a specific niche. I am personally not a car person; I look at the safety ratings for my kids and go from there.
Response four: What is the PEST analysis?
The information about PEST analysis was taken Investopedia (see below).
“Political: The political aspect of PEST analysis focuses on the areas in which government policy and/or changes in legislation affect the economy, the specific industry, and the organization in question. Areas of policy that may particularly affect an organization include tax and employment laws. The general political climate of a nation or region, as well as international relations, can also greatly influence the organization.
Economic: The economic portion of the analysis targets the key factors of interest and exchange rates, economic growth, supply and demand, inflation, and recession.
Social: The social factors that may be included in a PEST analysis are demographics and age distribution, cultural attitudes, and workplace and lifestyle trends.
Technological: The technological component considers the specific role and development of technologies within the sector and organization, as well as the wider uses, trends, and changes in technology. Government spending on technological research may also be a point of interest in this area.”
What Is PEST Analysis? Its Applications and Uses in Business (investopedia.com)
Response five: Dow absolutely engages in cooperative strategies and strategic alliances. Dow is one of the world’s largest chemical companies, because of this they supply not only organizations that use the chemicals for products and services they are producing and performing but they also supply smaller chemical companies. Because of this sometimes Dow needs to alter a chemical or supply an organization with a new one. These alliances can sometimes take extra effort, but the time is not only worth it for the financial gain for Dow but loyal business by giving the clients what they specifically need. The book gives an example of car manufacturers and suppliers, and this made me think of Dow and the way they are interacting with smaller chemical companies.
The book describes corporate level strategy as “actions a firm takes to gain a competitive advantage by selecting and managing a portfolio of businesses that compete in different product markets or industries.” (1) As important as small niches are like we learned last week it is also significant for an organization to have a variety of products or services offered so they can appeal to the masses more. The more diversification the less the risk appears to be. One product or service can fail or do poorly, but another may do well. This is a good indication of whether the corporate strategy is successful or not. Sometimes diversification is successful and beneficial and sometimes it is not. I believe it is a good way to gather data for the future. PEST is important when diversifying, especially if bringing in a new organization or working with a different region or country because being educated on what you are getting your organization or team into can be the difference between success and failure.
Referenced
Hoskisson, R., Hitt, M., Ireland, R.D. & Harrison, J. (2013). Competing for Advantage (3rd ed.). South-Western Cengage Learning: Mason, OH.
Response Six: Kale & Singh define strategic alliances as, “a purposive relationship between two or more independent firms that involves the exchange, sharing , or codevelopment of resources or capabilities to achieve mutually relevant benefits.” (2009, pg. 46) Hoskisson describes cooperative strategies as, “a strategy in which firms work together to achieve a shared objective.” (2012, pg. 201) There are a few alliances that D.R. Horton relies on in the Louisville market which is their own mortgage lender, DHIM, and a third-party title company called Limestone. These alliances would be consider a contractual arrangement primarily because there is a service being renders that mutually benefits the parties involved. For example, the continual business that D.R. Horton brings to Limestone it makes it more likely for beneficial tasks to occur like moving up closing dates to accommodate to new home buyers. The alliances are really effective because it allows D.R. Horton to save time in house with the process of acquiring a home because they are kept aware of the position that the buyer may be in financially. Hoskisson describes a diversification strategy as something that, “allows a firm to use its knowledge, skills, and resources to pursue opportunities for value creation creation in new business areas while also seeking to develop new capabilities and acquire new resources through participating in those areas.” (2012, pg. 225) The ability to utilize resources as a driving tool for developing competitive advantage in new home building is something D.R. Horton does well. The opportunities here in the Louisville market are evident and D.R. Horton is doing a great job at acquiring land at a price point that produces a higher profitability when they are able to sell homes from those lots. The incentives available to corporations that utilize a strategy will see success based on the amount of maximization of those incentives as they do business; as to say, there success is relative to their ability to utilize all the financial, knowledge, skill, or resource based incentives to acquire competitive advantage in their business. For example, the PEST analysis will help businesses to figure out the best political position to benefit from the incentives or tax breaks available at their disposal.