Republic of the Philippines

NORTH EASTERN MINDANAO STATE UNIVERSITY

Formerly Surigao del Sur State University
Cantilan Campus
Cantilan, Surigao del Sur
Telefax No. 086-212-5132
Website: www.sdssu.edu.ph

Corporate-Level Strategy: Creating Value through Diversification

This case study on microfinance provides valuable insights into the complex
dynamics of addressing poverty through financial means. Key learnings include
understanding the origins of microfinance, as seen in the Grameen Bank, and how it
has evolved to empower millions. The case emphasizes the importance of innovative
and nontraditional approaches to finance for the benefit of the very poor. Additionally, it
highlights the challenges and ethical considerations associated with the decision to go
public, revealing the potential tension between financial sustainability and the social
mission of helping the impoverished. This case study encourages, We students to
critically analyze the impact of financial strategies on social objectives, offering a real-
world perspective on the complexities of development economics.

In this chapter which is about "Corporate-Level Strategy: Creating Value through

Diversification" teaches me about corporate-level strategy and creating value through
diversification. It points out common mistakes like paying too much for a company and
not integrating it well. Managers can create value by combining different businesses in
two ways: by using shared skills and resources (economies of scope) or by having more
negotiating power and controlling the supply chain (market power). This chapter also
looks at unrelated diversification, which involves different businesses, and explains how
companies can benefit from corporate restructuring, parenting, and portfolio analysis. It
introduces ways companies can diversify, like mergers, alliances, and starting new
ventures. It also warns against behaviors that can harm value creation, such as
pursuing growth just for the sake of it, egotism, and using tactics to avoid takeovers.
This chapter teach me practical insights into corporate strategy using simple language.

Studying microfinance case taught me about the positive impact of small loans
in reducing poverty. i also gained insights into the challenges faced by microfinance
institutions when considering going public, highlighting the balance between financial
sustainability and social impact. The diversification showed me how businesses
strategically expand, and the importance of making smart decisions. These lessons in
responsible business practices and strategy are helping me grow as a student, giving
me a broader understanding of how businesses can make a positive impact.

NAME: CHERRY-ANN R. HUERTE

STRATEGIC MANAGEMENT