Class 10

Corporate-Level Strategy

Focuses on managing multiple businesses within a firm.

Transaction Cost Economics Perspective

Analyzes firm existence based on costs of transacting outside the organization.

Strategic Management Perspective

Aimed at improving profitability and growth through various strategies.

Diversification

A firm's operation in two or more lines of business, often structured into strategic business units (SBUs).

Related Diversification

When SBUs share resources and/or core competencies.

Unrelated Diversification

When there are no common links between SBUs in a firm's portfolio.

Economies of Scope

Cost advantages that result from shared activities and resources across different lines of business.

Value Creation Logic

Diversification that creates additional value for the firm.

Market Entry Modes

Methods for entering new markets including acquisitions, mergers, and collaborative ventures.

BCG Matrix

A portfolio management framework that assists in strategic planning by categorizing business units based on their market growth and market share.

Value-Neutral Diversification

Diversification aimed at external pressures and organizational motives without creating or reducing value.

Value-Reducing Diversification

Diversification that may hurt the firm's overall value often driven by managerial motives.

Mergers & Acquisitions

The process of consolidating companies or assets through various forms of financial transactions.

Harvest Strategy

A method of exiting a business by maximizing short-term cash flow rather than long-term profit.

Vertical Integration

The strategy of owning multiple stages of production or distribution in a supply chain.