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10 Cards in this Set

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