Analysis: CAE Inc. and Hyundai Group Introduction to case report #1 This section looks at CAE Inc. and argues that the firm should focus upon being primarily a single-product, single-technology, firm; diversification should only be pursued in areas where the company has a strong competence or some sort of competitive advantage. The ensuing few pages shall highlight why this position makes the most sense – and why it is frivolous for the company to repeat past errors vis-à-vis diversification. Strategic thinking and analysis table: comparing competitive advantage to diversification (a look at CAE’s problems) Diversification is a basic theory commonly found in business circles and often discussed at business seminars. There is a general...The end:
.....oup must realize that, absent an inspired leader, it has to change its approach to management – which means that decentralized, free-flowing, evolutionary and agile management must be the new approach if it wants to remain a viable conglomerate. Works Cited Choe , C., & Yin, X. Diversification discount, information rents, and internal capital markets. Quarterly Review of Economics & Finance, 49.2(2009): 178-196. Heller, Robert. “Agile Management.” Thinkingmanagers.com. 9 Jul. 2006. 23 Jun. 2010 http://www.thinkingmanagers.com/management/agile.php Larman , Craig. Agile and Iterative Development. New York: Addison-Wesley, 2004. Porter, Michael. Competitive Advantage: Creating and Sustaining Superior Performance. USA: Free Press, 1985.