BUS 478 Chapter Notes - Chapter 6: Capital Market, Corporate Tax, Cash Flow

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Da Silva Rui Jorge Basto

Document Summary

Corporate level strategy: specific actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. A means to grow revenues and profits, but there can be additional strategic intents to growth. Because the diversified firm operates in several different and unique product markets and likely in several businesses, it forms two types of strategies: Corporate level strategy concerned with two key issues: in what product markets and businesses the firm should compete, how corporate headquarters should manage those businesses. Business level strategy must be selected for each of the businesses in which the firm has decided to compete. A corporate level strategy"s value is ultimately determined b the degree to which the businesses in the portfolio are worth more under the management of the company than they would be under any other ownership .