Before completing this exercise, be sure to review Chapter 8, "Corporate Strategy;" specifically, the section entitled "Choosing the Diversification Path: Related versus Unrelated Businesses."

See if you can identify the value chain relationships that make the businesses of the following companies related in competitively relevant ways. You should consider whether there are cross-business opportunities for (1) transferring skills and technology, (2) combining related value chain activities to achieve economies of scope, or (3) leveraging the use of a well-respected brand name or other resources that enhance differentiation.

Bloomin' Brands

• Outback Steakhouse
• Carrabba's Italian Grill
• Bonefish Grill (market-fresh fine seafood)
• Fleming's Prime Steakhouse & Wine Bar

L'Oral

• Maybelline, Lancme, Helena Rubinstein, essie, Kiehl's, and Shu Uemura cosmetics
• L'Oral and SoftSheen-Carson hair care products
• Redken, Matrix, L'Oral Professional, and Krastase Paris professional hair care and skin care products
• Ralph Lauren and Giorgio Armani fragrances
• La Roche-Posay, Vichy Laboratories dermo-cosmetics

Johnson & Johnson

• Baby products (powder, shampoo, oil, lotion)
• Band-Aids and other first-aid products
• Women's health and personal care products (Stayfree, Carefree, Sure & Natural)
• Neutrogena and Aveeno skin care products
• Nonprescription drugs (Tylenol, Motrin, Pepcid AC, Mylanta, Monistat)
• Prescription drugs
• Prosthetic and other medical devices
• Surgical and hospital products
• Acuvue contact lenses

What is the cross-business strategic fit opportunity that exists with Bloomin' Brands?

Multiple Choice

• Leveraging the use of a well-respected brand.
• Transferring skills and combining relative value chain activities to achieve economies of scale.
• Transferring skills and technology.
• Combining relative value chain activities to achieve economies of scale and leveraging the use of a well-respected brand.
• There are no cross-business opportunities as all restaurants operate independently.

What are the cross-business strategic fit opportunities for L'Oral?

Multiple Choice

• Leveraging the use of a well-respected brand.
• Transferring skills and technology.
• Transferring skills and combining related value chain activities to achieve lower costs.
• Combining relative value chain activities to achieve economies of scale and leveraging the use of a well-respected brand.
• There are no cross-business opportunities as all beauty products companies operate independently.

What are the cross-business strategic fit opportunities for Johnson & Johnson?

Multiple Choice

• Leveraging the use of an unknown brand to build brand awareness.
• Combining relative value chain activities to achieve diseconomies of scale.
• There are no cross-business opportunities as all businesses operate independently.
• Leveraging the use of a well-respected brand and combining value chain activities to achieve lower costs.
• Transferring skills and technology.

Corporate strategy helps managers understand which strategy question?

Multiple Choice

• Where should the firm compete?
• How should the firm expand?
• How should the firm compete?
• How can the firm buy out a competitor?
• Where should the firm expand?

Disney's expansion from short films to animated films to live action films to television is an example of?

Multiple Choice

• expansion into new geographies by leveraging a core capability.
• expansion into vertical markets by leveraging a core asset.
• expansion into vertical markets to address critical supplier power.
• expansion into new markets by leveraging a core capability.
• expansion into new geographies by leveraging assets.