Corporate Strategy 

Objectives

We will focus on corporate strategy, i.e. the strategic decisions firms make to determine the scope of businesses and markets they will operate in (in terms of product markets and geographic markets), and how they will organize them. Or alternatively put, we will discuss the boundaries of the firm. We will analyze how firms can engage in value creating diversification, horizontally or vertically. In addition, we will discuss how firms can obtain the necessary resources to grow either in their existing markets and businesses or to enter new ones. Choosing the right path to obtaining resources is essential for firm performance and competitive advantage. We will discuss three options to obtain resources: build (internal development), borrow (licensing, alliances, joint ventures) and buy (mergers and acquisitions). By obtaining the right resources through the right mode, firms can grow or strengthen their competitive position in their current domain or expand into a new one.

General characterization

Code

14218

Credits

2

Responsible teacher

Youtha Cuypers

Hours

Weekly - Available soon

Total - Available soon

Teaching language

English

Prerequisites

Available soon

Bibliography

Capron, Laurence, and Will Mitchell. Build, borrow, or buy: Solving the growth dilemma. Harvard Business Press, 2012. (Selected Chapters, optional)
Case studies to prepare for class:
- Amazon.com, Inc case
- Disney’s acquisition of Pixar.

Teaching method

This module uses a combination of lectures, case discussions and a final assignment.

Evaluation method

The assessment of this curricular unit is done together with the block of curricular units of the same area of knowledge. This assessment has 3 moments, which together define the final grade of the curricular unit:
• Individual exam with a weighting of 50% of the total mark
• Group work with a weighting of 35% of the total grade value
• Individual reflection-action exercise carried out at the end of the curricular unit, with a weighting of 15% of the total grade value. The set of individual action-reflection exercises is a journaling activity, which will constitute, at the end, a learning portfolio capable of synthesising the contributions of the Executive Master for that student.

Subject matter

Session 1: Different corporate strategies
In this session we will discuss the rationale for different types and levels of diversification, particularly focusing on their value creating potential. We will examine how firms can achieve cost and revenues synergies when diversifying, and thereby create value. We will also cover the risks assocaited with diversification.
Session 2: How to enter new product/geographic markets
In this session we will focus on how firms can expand and get the resources needed to do so. We will discuss internal development, licensing, alliances, joint-ventures, and mergers and acquisitions. We will focus on a framework that will help us understand which of these options is most suitable under different conditions to ensure value creation. We will focus on some of the particular challenges associated with alliances, joint-ventures and acquisitions.

Programs

Programs where the course is taught: