Can strategy alternatives be used, in related or unrelated industries, that better fit the company’s environment? Is there diversification opportunities that require capabilities investments not yet considered?

Helmerich and Payne – Value Added Chain and Diversification Analysis

Value-Added Chain and Diversification Analysis

Has to be about the company Helmerich and Payne, a US based oil and gas drilling company.

The readings for this week provide the terminology and concepts associated with integration, along the value-added chain and diversification of products and services offered in the marketplace. For this module:

Research the firm’s value chain and its diversification strategies. Look for opportunities to improve competitive advantage and ROIC through vertical integration or outsourcing. Research the levels and types of product diversification in their product lines or services. Look for strategic rationale in building the “portfolio” – what capabilities and competencies are being leveraged and how? Also, look for vehicles of diversification –acquisitions and mergers, joint ventures, strategic alliances, and partnerships that are associated with vertical and horizontal integration. This discussion should differ from last week’s vehicles of diversification section, which focused on using vehicles for regional expansion.

Analyze the information in the context of diversification strategy frameworks presented in the readings.

Based on an understanding of the firm’s competitive advantage, what is being leveraged vertically and horizontally, and how is diversification of the firm shaping its competitive advantage? How is it shaping the firm’s ROIC in the short run versus the long run ? Again, attempt to find changes to this metric in correspondence with these types of decisions being made within the company.

Report your findings as a description of the firm’s Value Chain and Diversification strategy. Include critical analysis of the observed strategy, including the rationale for outsourcing. Can strategy alternatives be used, in related or unrelated industries, that better fit the company’s environment? Is there diversification opportunities that require capabilities investments not yet considered?

Here are some examples: 1 Links to an external site.& 2Links to an external site.

Recommended outline :

Value chain analysis

Value-Added chain

Upstream

-Vehicles for diversification

Downstream

-Vehicles for diversification

Horizontal integration

-Vehicles for diversification

-Related and unrelated diversification – explain which strategy they use

Outsourcing activities – what do they outsource? what should they outsource?

Impacts on ROIC

Impact on their competitive advantage

Note: student examples are simply examples and may include errors, use these examples with your best judgement. AVOID using these as templates as they might not work for your selected company. For example, students in past classes have used the exact same headings as those provided in the examples, but the headings did not work for their company and caused them to fail an assignment. Remember to use critical thinking and report in a manner that best suits your company.

Please submit for this assignment:

Please include your name and the module number at the top of each page, preferably in the header.
Use one-inch margins on all four sides.
Single space and indent paragraphs.
Use a 12-point font for body text.
Use a distinguished font for headings and subheadings.
Use page numbers, preferably in the footer.
10 page limit including references.
Follow APA style guidelines for documentation, and cite and reference everything

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