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Note on Managing the Value Chain: Governance, Location, and Firm Scope Decisions
內容大綱
This note explains the considerations involved in determining a firm's vertical, horizontal, and geographic scope. It is organized into five sections: An introduction that presents important questions related to strategy formulation that managers face after mapping their firm's value chain; a second section that provides a brief introduction to Transactions Cost Economics, a framework that helps explain firm governance and scope decisions; a third section that links TCE considerations to decisions about a firm's vertical and horizontal scope; a fourth section that explores the issue of where to locate activities; and a fifth section that concludes. This case is included in Module 1 of the course Business Thought & Action.