Strategic CH7

is primarily about the choice of direction for a firm as a whole and the management of its business or product portfolio

• Corporate strategy

• Directional strategy

• Portfolio analysis

• parenting strategy

The firm’s overall orientation toward growth, stability, or retrenchment

• Corporate strategy

• Directional strategy

• Portfolio analysis

• parenting strategy

The industries or markets in which the firm competes through its products and business units.

• Corporate strategy

• Directional strategy

• Portfolio analysis

• parenting strategy

the manner in which management coordinates activities, transfers resources, and cultivates capabilities among product lines and business units.

• Corporate strategy

• Directional strategy

• Portfolio analysis

• parenting strategy

a transaction involving two or more corporations in which both companies exchange stock in order to create one new corporation.

• Merger

• An acquisition

a 100% purchase of another company.

• Merger

• An acquisition

can be achieved by taking over a function previously provided by a supplier or distributor.

• Vertical growth

• Vertical integration

• Transaction cost economics

• Full integration

the degree to which a firm operates vertically in multiple locations on an industry’s value chain from extracting raw materials to manufacturing to retailing

• Vertical growth

• Vertical integration

• Transaction cost economics

• Full integration

proposes that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market become too great.

• Vertical growth

• Vertical integration

• Transaction cost economics

• Full integration

a firm internally makes 100% of its key supplies and completely controls its distributors.

• Vertical growth

• Vertical integration

• Transaction cost economics

• Full integration