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.