Mgt 409 Exam 2 Ch.6 Corporate-Level Strategy Questions (27 Terms) With Verified Definitions Updated 2024

growth for growth's sake {Ans: managers' actions to grow the size of their firms not to increase long-term profitability but to serve managerial self-interest}joint ventures {Ans: new entities formed within a strategic alliance in which 2+ firms, the parents, contribute equity to form a new legal entity}diversification {Ans: the process of firms expanding their operations by entering new businesses}sharing activities {Ans: having activities of 2+ businesses' value chains done by one of the businesses}mergers {Ans: the combining of 2+ firms into one new legal entity}vertical integration {Ans: an expansion or extension of the firm by integrating preceding or successive production processes (backward toward suppliers, forward toward end-users)}golden parachute {Ans: a prearranged contract with managers specifying that, in the event of a hostile takeover, the target firm's managers will be paid a significant severance packaged}portfolio management {Ans: a method of (a) assessing the competitive position of a portfolio of businesses within a corporation, (b) suggesting strategic alternatives for each business, and (c) identifying priorities for the allocation of resources across the businesses. (BCG approach - stars, question marks, cash cows, dogs)}market power {Ans: firms' abilities to profit through restricting or controlling supply