Multi Corporation Strategies

Front 1

Theory of the M form

Back 1

1. Adaptation to bound rationality, decision making dispersed.
2. Allocation of Decision Making, operation vs.strategic
3. Min. coordination costs
4. Avoid goal conflict.

Front 2

Role of Corporate Management

Back 2

1. Managing Corporate Portfolio
2. Excercising guidance and control over individual businesses
3. Manging linkages between businesses to create value, allocate resources.

Front 3

Porter's Linkages between Corporate and business unit

Back 3

1. Portfolio management, company should be like a holding company
2. Restructuring: aquiring poorly managed companies and resturcture cut costs.
3. Transferring skills: create value by transfering skills that are general across all business units.
4. Sharing activites: integration of business units for better of corporate.

Front 4

Agency Problem

Back 4

Occurs between shareholders and managment when cooperation between the two become hard because the managers are suppose to have shareholders goals as number 1.

Front 5

Mechanisms used for Goal Alignment

Back 5

Control-supervsing subordinates.
Financial-reward preformance
Shared Values-high levels of cooperation corporate culture to align with goals, postive.

Front 6

Hierarchy as control

Back 6

1. specilization of jobs
2. hierarcy
3. coordination and contol
4. separation of emplyment rules and norms
5. separation of mangament and ownership
6. rational legal authority
7. formalization in writing

Front 7

Organizing on coordination

Back 7

1. geographically dispersed organization where communication built on local units.
2. funcunational speciliztion
3. divrisifed over many products than product organization.