Vocab

acquisition (p. 208) - the purchase of a company that is completely absorbed as an operating subsidiary or division of the acquiring corporation

backward integration (p. 208) - assuming a function previously provided by a supplier

bankruptcy (p. 219) - involves giving up management of the firm to the courts in return for some settlement of the corporation’s obligations

BCG (Boston Consulting Group) Growth-Share Matrix (p. 221) - the simplest way to portray a corporation’s portfolio of investments

BOT (Build, Operate, Transfer) concept (p. 214) - a variation of the turnkey operation. Instead of turning the facility (usually a power plant or toll road) over to the host country when completed, the company operates the facility for a fixed period of time during which it earns back it investment plus a profit

captive company strategy (p. 219) - involves giving up independence in exchange for security

cash cows (p. 223) - typically bring in far more money than is needed to maintain their market share

concentration (p. 208) – focusing on the current product line(s) in one industry

concentric diversification (p. 214) - A type of diversification in which a company acquires or develops new products or services (closely related to its core business or technology) to enter one or more new markets

conglomerate diversification (p. 215) - diversifying into an industry unrelated to its current one

corporate parenting (p. 227) - views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units

corporate strategy (p. 206) - primarily about the choice of direction for a firm as a whole and the management of its business or product portfolio

directional strategy (p. 207) - The firm’s overall orientation toward growth, stability, or retrenchment

diversification (p. 208) – obtaining other product lines in other industries

divestment (p. 219) - If the corporation has multiple business...