Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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 |
