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10 Cards in this Set
- Front
- Back
What does M-Form stand for?
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Multi-divisional firm
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What are the characteristics of an M-Form company?
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• Recognizes bounded rationality
• Divides decision-making according to frequency • Global, rather than local optimization |
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What does bounded rationality mean with regard to management?
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Top management is ultimately limited in its decision making capacity
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What does it mean to divide decision making according to frequency?
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• High frequency operating decisions at divisional level
• Low frequency strategic decisions at corporate level |
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What are 3 potentially value adding activities corporate HQ can engage in?
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• Managing the corporate portfolio
• Influencing individual businesses • Managing linkages between business |
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What are the 2 axes of the GE/McKinsey Matrix?
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y-axis: Industry attractiveness
x-axis: Business unit position |
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What are the two axes of the BCG Growth-Share Matrix?
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y-axis: Annual rate of mkt growth
x-axis: Relative market share (top right=star, bottom left=dog) |
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What are the two basic approaches to corporate control?
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• Monitoring inputs and behavior
• Monitoring output and performance |
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What are the five components of the McKinsey pentagon for restructuring?
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1) current market value
2) company value as is 3) potential value w/ internal improvements 4) potential value w/ external improvements 5) optimal restructured value |
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What are Porter's 4 concepts of corporate strategy?
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1) portfolio management
2) restructuring 3) transferring skills 4) sharing activities |