ADMS 2400 Study Guide - Final Guide: Market Saturation, Strategic Management, Transaction Cost

• School: York University
• Department: Administrative Studies
• Course: ADMS 2400
• Professor: Anna Blake

Document Summary

Direction setting is a major corporate-level strategic management responsibility. Management of resources is a major corporate-level strategic management responsibility. Market saturation is one possible reason for firms to abandon their concentration strategies. Managers sometimes choose to diversify because they are motivated by power, income, and status. Transaction cost economics is used primarily to determine when unrelated diversification is appropriate. Synergy among businesses is created instantly if they are related to each other. Most acquisitions are financially beneficial to the shareholders of the acquiring firm. A common criticism that applies to many portfolio models is that they are based on the past instead of the future. Multiple choice questions: which of the following is typically a corporate-level strategy formulation. Choice of generic strategy for each business unit. As corporate-level strategies develop, any of the following strategies might be expected to directly follow a concentration strategy except: Product obsolescence will rarely affect a firm pursuing this strategy.