Essay on Questions and Answers on Viacom's Corporate Level Strategy

631 Words Jun 22nd, 2013 3 Pages
1. What is the Corporate Level Strategy that Viacom is using? Give examples of Operational Relatedness and Corporate Relatedness to back up your answer.

The Corporate Level Strategy that Viacom is using: Several business level strategy, they are using the decentralize approach to management and providing the high powered incentive for divisional managers, which mean employ a separate business-level strategy for each product market area to dealing with product and geographic diversity. * Market Development that Viacom is moving into different geographic markets
Viacom have participating in the globally competitive market. Viacom’s software reach extend to some 166 countries in 18 languages around the world so they
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Related Constrained Diversification Strategy can spread the risk of business and can reduce the cost by sharing the product, technology, and distribution linkage between the firm businesses.

3. Regarding Viacom’s options for Paramount in Europe - a long-term supply contract or put up equity in a European company - what are the pros and cons of each strategy? What is your recommendation to the board regarding which strategy they should pursue?
For Long-term supply contract option
Pros:
* It has lower risk than become an equity partner in its satellite programming channels because we can gain $1 billion for sure. * It provided protection in the event of a U.K. style platform merger, which would reduce the studio’s bargaining leverage. * License fees helped offset margin pressure at the studio causes by escalating talent and marketing costs.
Cons:
* Losing the opportunity to having the partner to compete with another studio that had emerged as a prospective strategic partner. * We have to wait for a long time to be able to make any adjustment if we found the better opportunity after making the long-term.

For Becoming Equity Partner option
Pros:
* Over the long-term, potentially offered greater strategic and financial upside. * Having the partner to share technology, business strategic and increase ability to compete with competitors. * Sized our business up can

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