ECON 308 Study Guide - Final Guide: Facility Management, Strategic Alliance, Nicotine
Document Summary
Split-off means some parent firm shareholders receive the subsidiaries shares in return for relinquishing their parent firm shares. Divestiture means selling a segment of a firm to a third party. Ex: 21st century selling part of their assets to disney. Ex: philip mores got into trouble by the government because they added more nicotine than they should, so they bought kraft-food and change their name into altria. Outsourcing is the switching from make to buy parts and services. Ex: if you don t cook at home and go to a restaurant to eat then you are outsourcing. Supply chain management ensures that each transaction in the process of producing a product from raw materials to the final product is efficient. It requires the exchange of technical and managerial knowledge between upstream and downstream firms. It many also require coordination to achieve just-in-time inventory control.
