Competitive Strategy Management System

Question: Use the Theory relating to Adaptation, Aggregation and Arbitrage to explain how companies from the following industries have used this theory for the pursuit of their businesses. Answer: Introduction Woodbridge Company Limited is a Pvt. Ltd company and is the main shareholder of the company Thomson Reuters. Woodbridge Company Limited is based in Canada. In 2008, Thomson Reuters was formed, when Reuters was acquired by the Thomson Corporation. Woodbridge is situated at Canada in Toronto. David Binet is the Chief Executive Officer as well as the president of Woodbridge Company. At the end of 2010, 40 percent shares of Woodbridge was sold to CTV Globemedia, a multimedia Canadian company with CTV ownership, to BCE Inc.; the largest interest the company held was in The Globe and Mail Inc. until it achieved 100 percent of the Globe and Mail in August 2015 by acquiring BCE share remaining. Woodbridge is the main vehicle for investment for the family members of the late Roy Thomson, the first Baron Thomson of Fleet. After the death of Kenneth Thomson in 2006, his sons Peter Thomson and David Thomson became the chairman of the Woodbridge Company. Theory of Adaptation As per Stathakopoulos and Papavassiliou, there many undefeatable differences , for example, cultural differences and economic differences among countries as well as states within the countries which urge to adapt or develop a new or different operational strategies. The main reason for choosing to adapt is the change in different places within the country. Major differences are the cultural, economical and development of industries, media availability and legal restrictions, etc, Hence, Woodbridge should also look into the theory of adaptation when publishing book in various places in a country as a various place of the particular country have different tastes or especially languages hence the book published by the organization should adjust the correct language or any other needs should be adapted for the pursuit of their business (Hanafi 1-7, 2013). Theory of Aggregation If at a particular stage of an organization, the approach that is aggregate emphasizes the shareholders interests or different constituencies that manifest the organization, then an approach of aggregate enterprise to the group of corporate must aim its analysis on the finite business existence that formally establish it and might cancel any separate essential self for the corporate group itself. So the organization should look into creating a group of itself (Peitz, 1995). The organization should make a group of corporate for discussing various plans and function which must be taken during the operation of the organization. Theory of Arbitrage In 1976 Ross mainly developed The Arbitrage Pricing Theory (APT). The probable properties of returns of main property are reliable with a factor structure are believed by every investor in this one-period model(Munshi). Argument of Ross states that if balance prices present no arbitrage advantages over static portfolios of the properties, then the desirable returns on the properties are moreover related linearly to the loading factors. The substitute of Capital Asset Pricing Model (CAPM) is APT, in that both the models argue that a straight relation between assets desired returns and their statistical measure with another random variables. The statistical measure is described as a calculation of risk that a investors will not be able to avoid by expansion(Berkman 32-35, 2012). The slope Risk premium is the interpretation of the straight line relation between the statistical measure and the expected returns. Mean-variance efficiency is closely linked to such a relation.. Hence pricing the books and marketing it properly in different parts of the target market will definitely enhance the returns of the company. References Berkman, Henk. "The Capital Asset Pricing Model: A Revolutionary Idea In Finance!".Abacus49 (2012): 32-35. Web. Hanafi, Hind. "Adaptation Theory : The Current Foci".17 (2013): 1-7. Web. Munshi, Jamal. "The Rise And Fall Of The Arbitrage Pricing Theory".SSRN Electronic Journaln. pag. Web. Peitz, Martin.Demand Aggregation And The Theory Of Product Differentiation. 1995.