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| a strategy that focuses on gaining long-term revenue, profits, and market value through managing operations in multiple businesses |
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| a firm entering a diff business in which it can benefit from leveraging core competencies, sharing activities, or building market power |
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| cost saving from leveraging core competencies or sharing related activities among businesses in a corp. |
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| a firm’s strategic resources that reflect the collective learning in the organization |
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• Must enhance comp. adv. by creating superior customer value
• Diff business in the corp must be similar in at least 1 imp way
• Must be difficult 4 comp to imitate or find substitutes |
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| having activities of 2 or more businesses value chains done by 1 of the businesses |
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| firm’s abilities to profit through restricting or controlling supply to a market or coordination with wither firms to reduce investment |
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| the improve. in bargaining position relative to supp and cust. |
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| an expansion or extension of the firm by integrating preceding or successive production processes |
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• Reduce dependence of suppliers;
• Benefits: (1) secure supply of raw mat. (2) protection and control over assets (3) access to new business opp. & new forms of tech
• Risks: (1) costs & exp associated with inc o/h and capital expenditures, (2) loss of flexibility, (3) problems with unbalanced capacities, |
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| Transaction cost perspective |
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Definition
| the choice of a transaction’s governance structure, such as vertical integration or market transaction is influenced by transaction costs including search, negotiating contracting, monitoring, and enforcement costs |
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| Unrelated diversification |
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| a firm entering a diff business that has little horizontal interaction with other businesses of a firm |
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| the positive contribution of the corporate office to a new business as a result of expertise and support provided and not as a result of substantial changes in assets, capital structure, or mgmt. |
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| a methods of assessing the competitive postion of a portfolio of businesses within a corp. |
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| the incorporation of 1 or more firms into 1 new legal entity |
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| the combing of 2 or more firms into 1 new legal entity |
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| a cooperative relationship btwn 2 or more firms |
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| new entities formed within strategic alliance in which 2 or more firms, the parents, contribute equity to form the new legal entity |
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| entering a new business through investment in new facilities, often called corporate entrepreneurship and new venture development |
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| manager acting in their own self-interest rather than to maximize long-term shareholder value |
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| managers actions to grow the size of their firm NOT to increase long-term profits but to serve managerial interest |
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| managers’ actions to shape their firms strategies to serve their selfish interest rather than to maximize long-term shareholder value |
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| managers action to avoid losing wealth or power as a result of a hostile takeover |
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| a pymnt by a firm to a hostile party for the firms stock at a premium, made when the firms mgmt. feel that the hostile party is about to make a tender offer |
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| a prearranged contract with managers specifying that, in the even of a hostile takeover, the target firms managers will be paid significant severance package |
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Term
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| used by a company to give shareholders certain rights in the event of takeover by another firm |
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