Internal Development 2.0

Modes of changing corporate scope

Session 5 begins the second module of the course. In the first module we discussed the boundaries of the firm — whether synergies (joint operation) were best managed within a single firm, or between firms in a market with a contractual relationship of some sort. In this second module, we shift attention to modes (or pathways) for achieving these boundaries. A firm has decided to create synergies with a new business, and based on governance costs determined that the synergies are best managed with a business unit within the firm…