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11 Cards in this Set
- Front
- Back
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What are the four activities through which corporate management adds value to its businesses? |
- Managing the overall corporate portfolio - Managing each individual business - Manage linkages among businesses - Managing change |
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What is the definition of parenting advantage? |
Net profit should be bigger than that of which any other potential coporate parent can offer |
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What are the core questions for corporate management? |
1. What business should we be in? 2. How should we manage those businesses in order to generate as much value as possible? |
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What are the two variables used by the 'Ashridge portfolio display' ? |
- Value adding - Value destroying |
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What are the two ways in which corporate headquarters can control their businesses? |
- Input control (company controls input into strategy by reffering them upwards for corporate approval) - Output control (The company controls the output from strategy by setting and monitoring performance targets backed by penalties) |
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What is the dual planning processof multidivisional companies? |
1. strategic planning --> In order to achieve medium and long term goals 2. Financial control --> In order to achieve short-term goals |
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The corporate HQ are often separated in two groups: |
- Corporate management unit --> Responsible for supporting activities such as strategic planning, finance and legal - Shared service organization --> For supplying sommon services such as research, engineering and training |
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Name the four corporate strategy types as identified by Porter |
- Portfolio management --> most limited form of resource sharing: moederbedrijf koopt ondernemingen en laat die hun gang gaan. - Restructuring --> Waarde creeeren door slecht geleide bedrijven op te kopen, ze te herstructureren en waardevol te maken. - Transferring skills --> Het overbrengen van organizational capabilities tussen verschillende business units. Er wordt hiermee alleen waarde gecreerd als de capabilities bruikbaar zijn in de verschillende business units. - Sharing activities --> Het exploiteren van economies of scope in verschillende resources en capabilities. Hierbij zorgt corporate management ervoor dat er zoveel mogelijk mogelijkheden zijn voor het delen van de resources. |
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What are the five stages of the McKinsey restructuring pentagon? |
1. Current value of the company 2. Value of the company as it is 3. The potential value of the company with internal improvements 4. The potential value of the company with ecternal improvements 5. The optimum restructures value of the company |
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What are the three approaches to stimulate corporate adaption? |
- Adaptive tension - Institutionalizing strategic change - Top down, large-scale development initiatives |
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What is the definition of 'Corporate governance' ? |
The system by which companies are directed and controlled. |
