Corporate Control, Merger & Acquisition
Multi-business corporations are prominent in the economy, yet the logic behind their success or failure – corporate strategy – remains unclear. In addition, a principal mode for implementing corporate strategy, mergers and acquisitions (M&As), has had a mixed record of success. This course begins with explaining the nature and logic of corporate strategy – how firms and senior managers make decisions on scope, and how it is distinct from business level strategy. The issue of why firms diversify, relatedness and unrelatedness in diversification, and understanding the principles that underlie successful diversification make up the first part of the course. The second part of the course focuses on mergers and acquisitions, which research shows only succeed about half of the time. It provides a deep understanding factor explaining differential success and how managers can develop more successful growth strategies.