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Strategic Management
, Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
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Case Discussion Questions
Discussion Questions for Case 34--The Viacom Empire
- How did Viacom's business activities evolve until 1996? What business-level strategy(ies)
did it use to obtain a competitive advantage?
- Why did Sumner Redstone take over Viacom?
- Why did Redstone think that a merger with Paramount could add value to Viacom's core businesses? After the merger with Paramount what corporate-level strategy
was Viacom pursuing?
- Why did Sumner Redstone want to merge with Blockbuster Video Corp.? How did the merger with Blockbuster affect
Viacom's corporate-level strategy?
- What major challenges and problems faced Redstone and his managers as they
attempted to manage Viacom's diverse array of businesses to create new value for shareholders in 1996?
- What kind of structure does Viacom have, why does Viacom use it, and what
are the potential problems associated with it for Viacom?
- What steps did Sumner Redstone take in and after 1996, to turn around the
performance of its Blockbuster division?
- What steps did Redstone take to manage Viacom's problems and achieve the promise of its other extensive entertainment assets?
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