Further aspects of the growth of firms
- Created by: Aimen Kamran
- Created on: 29-05-13 19:42
View mindmap
- Further aspects of the growth of firms
- Grow to achieve business objectives
- Neo-classical theory
- Assumes Pr. max main objective
- Managerial theories
- Aims such as status etc. Short-termism
- Divorce between ownership and control
- Managerial objectives may not be good for firm
- Shareholders might want dif things
- Example of the principal-agent problem
- Don't confuse why they grow with how they grow
- Externally
- Mergers or takeovers
- Organically
- More value/volume
- Types of growth
- Horizontal
- Vertical
- Economies of scale
- Horizontal
- Economies of scale
- Lateral
- Diseconomies more likely
- Externally
- Do not confuse growth with financing
- Further aspects of the growth of firms
- Grow to achieve business objectives
- Neo-classical theory
- Assumes Pr. max main objective
- Managerial theories
- Aims such as status etc. Short-termism
- Divorce between ownership and control
- Managerial objectives may not be good for firm
- Shareholders might want dif things
- Example of the principal-agent problem
- Don't confuse why they grow with how they grow
- Externally
- Mergers or takeovers
- Organically
- More value/volume
- Types of growth
- Vertical
- Economies of scale
- Economies of scale
- Lateral
- Diseconomies more likely
- Vertical
- Externally
- Internal
- Ploughed back profit
- Further aspects of the growth of firms
- External
- Do not confuse growth with financing
- Internal
- Ploughed back profit
- Internal
- Loans
- Shares
- Do not confuse growth with financing
- Leaves firm vulnerable to hostile takeover
- Sometimes not always
- Shares
Similar Economics resources:
Teacher recommended
Teacher recommended
Comments
No comments have yet been made