Assignment 1: Discussion Question
Synergy is an often-used word in business, but as the popular press and the textbook suggest, many efforts at diversification do not provide value to customers or shareholders.
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Based on your analysis of Harley-Davidson to date and its merger, describe how it has done or could do the following:
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- Find economies of scope. Provide examples of specific actions Harley-Davidson’s managers could take to reduce expenses or share activities through horizontal relationships across brands.
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- Find ways to achieve economies of scope by leveraging assets and capabilities across business units.
- Find ways to enhance market power by pooling and negotiating or vertical integration.
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