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Main messages +similarities and differences

8 important questions on Main messages +similarities and differences

How does Campbell's structured approach work?

1. identify critical succes factors of the SBU business 2.identify the parenting opportunities of the SBU: how can the SBU performance be improved 3. identify the characteristics of the parent and assess the fit (parenting fit matrix) 4. evaluate SBU performance

What are the main differences and similarities between the first 5 texts of week 2 on corporate strategy?

1. Text 1 differs from the rest because it sees corporate strategy as portfolio management where BU's operate independently and in unrelated businesses.
2. Texts 2-4 are similar in that they see corporate strategy as cooperation between BU's/alliance partners, they share capabilities and maintain a horizontal perspective. 3. Text 5 differs from the rest because it sees corporate strategy as achieving hte optimal fit between corporate parents and their strengths and the needs of the BU's, it maintains a more vertical perspective.

What is the m form? and what are its characteristics vs the multidimensional form?

m form: 1.autonomous SBU's that control their own resources 2. one leading dimension as main profit center 3. some synergy realized through corporate account management and SSC's 4. still the dominant form in the corporate landscape multidimensional form: 1. organized along multiple dimensions to increase synergies 2. area managers and product managers are equally important 3. customer is shared and is the main profit center 4. examples: IBM and Microsoft.

What is the main problem with the original m-form?

The main problem or tradeoff that firms face with the use of the m-form is the need to create synergy vs the need for clear accountability.

What are the main developments according to Strikwerda and Stolhorst with respect to the m-form?

During the 1980's synergy became more important, certain mechanisms introduced that increase synergy--> SSC , corporate account management. M form still dominates the Dutch corporate landscape. Some firms realize synergy by organizing themselves alongside multiple dimensions.

What are the similarities and differences between texts 1-5 and text 6?

1. the m-form involves portfolio management, just as in texts 1 and 2
2. the multidimensional firm involves cooperation between all BU's
3. texts 1-5 focus more on corporate strategy while 6 focuses more on corporate structure
4. texts 1-5 assume firms are organized along one dimension while 6 assumes alongside multiple dimensions

What are some problems with the m-form?

1. high employee costs 2. internal battle over resources 3. lack of standardization and cooperation 4. loss of market opportunities 5. tension of firm to exploit synergy and need for clear accountability

What are the reasons of the m-forms popularity?

1. it stimulates entrepeneurship through the creation of an internal capital market 2. its a simple way to exploit synergies (financial and economies of scope)

The question on the page originate from the summary of the following study material:

week 2

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