SGMA 591 Lecture Notes - Lecture 6: Vertical Integration, Buttermilk, Value Chain

• School: University of Calgary
• Department: Strategy and Global Management
• Course: SGMA 591
• Professor: Ayesha Malhotra

Document Summary

Explanations: entrepreneur bears risk; residual claimant (equity, transaction costs. Key questions and topics: vertical integration, product, and geographic diversification. The role of transaction costs in vertical scope: contributions of nobel prize winners to our understanding. A broader look at vertical relationships: key questions and recent trends. Corporate strategy is the actions/decisions taken to gain strategic. Competitive advantage (sca), through a mix of business activities, spanning one or more or the following: value chain stages for a given product/service, diverse product markets, diverse geographic markets. Decisions about the boundaries of the firm. Basic corporate goal: v(c) > v(b1) + v(b2) Classifying vertical integration doing more things in house ; firm"s ownership of vertically related activities: backward vs. forward. Backward example: zara manufactures its own clothes. Ownership and control over production of its inputs. Forward example: apple has its own retail stores. Ownership and control of activities previously undertaken by customers: full vs.