Flashcards on Corporate Strategy and Business Growth
Corporate Strategy and Business Growth: Student's Guide
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Management Models
18 cards
Card 1
Question: What are the four basic corporate management models described under 'Management Models'?
Answer: Portfolio management, Restructuring, Capabilities transfer, and Participation in shared activities.
Card 2
Question: What is the general perspective on where portfolio management tools are applied?
Answer: They are applied as strategic diagnosis tools at the corporate level in diversified (multi-business) companies to evaluate and manage a collection of
Card 3
Question: What strategic conditions make portfolio management appropriate?
Answer: Ability to identify and acquire companies with low valuations; willingness to quickly sell companies at a loss or for a sales bonus; and operating in
Card 4
Question: What company requirements support effective portfolio management?
Answer: Autonomous business units, a small low-cost corporate staff, and incentives based on business-unit results.
Card 5
Question: What are common mistakes when using portfolio management?
Answer: Implementing it in countries with efficient capital circulation and developed management resources; and ignoring that the sector structure may not be
Card 6
Question: Name three example companies that used portfolio management.
Answer: Gulf & Western; Sara Lee Corporation; ITT Inc.
Card 7
Question: What strategic requirements indicate suitability for a restructuring management model?
Answer: Ability to identify companies with restructuring potential, willingness to transform acquired business units, similarities among business units, and w
Card 8
Question: What company capabilities are needed for successful restructuring?
Answer: Autonomous business units and a corporate staff with talent and resources to anticipate and manage changes in acquired business units.
Card 9
Question: What are common mistakes when pursuing restructuring?
Answer: Confusing rapid industry growth with real restructuring potential; lacking resources to solve problems; and ignoring unattractive sector structure.
Card 10
Question: Give two examples of companies known for restructuring management.
Answer: Hanson Trust and CEMEX.