Meeting 1: Growth and corporate strategy: Diversification
Reading:
The driving factor: Growth
Mahoney, J. T., & Pandian, J. R. (1992). The resource-based view within the
conversation of strategic management. Strategic Management Journal, 13(5), 363–
380. (17 pages, reading time approx. 60 minutes) (Links to an external site.)
Raisch, S., & Von Krogh, G. (2007). Navigating a path to smart growth. MIT Sloan
Management Review, 48(3), 65. (10 pages, reading time approx. 30 minutes) (Links
to an external site.)
Snoeren, P. (2018) The limits to profitable growth rate. Working paper. (40 pages
double spaced, reading time approx. 60 minutes)
Reasons for Diversification
Amihud, Y., & Lev, B. (1981). Risk Reduction as a Managerial Motive for
Conglomerate Mergers. The Bell Journal of Economics, 12(2), 605. (17 pages,
reading time approx. 60 minutes) (Links to an external site.)
Wan, W. P., Hoskisson, R. E., Short, J. C., & Yiu, D. W. (2011). Resource-Based
Theory and Corporate Diversification. Journal of Management, 37(5), 1335–1368.
(32 pages, reading time approx. 120 minutes) (Links to an external site.)
Montgomery, C.A. 1994. Corporate diversification. Journal of Economic
Perspectives, 8(3): 163-178. (14 pages, reading time approx. 60 minutes) (Links to
an external site.)
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Lecture:
PETER SNOEREN:
- I won't ask you the formula to calculate the competitive growth rate, but you should
really understand that there is a minimally viable growth rate and one that is limited.
- Alternatively, I won't ask you any specific methods in my paper, but I do expect you
to be able to argue for the mechanisms that cause managerial limits to growth to
exist.
- For the second part of the lecture, you need to understand the global theoretical
arguments for the three theories (i.e. you should be able to understand and link the
unit of analysis, reasons, and direction of diversification, and its performance
effects). This understanding needs to be deep and I might also ask you to compare
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