One of my first teaching experiences involved an evening MBA class. At least half of the students were older than I was and all had more real-world experience. We were discussing organization design and the choice to centralize or decentralize. It’s a choice with profound implications for the structure of incentives, communication patterns, and […]
I had a fantastic time with the folks at Capital Notions. It was a great conversation that you can listen to below. We talked about a wide range of topics, including Walt Disney and how company leaders can create a “Theory of Your Firm.” Enjoy!
Make it or buy it? This strategic decision remains notoriously difficult for businesses. Sustained value creation requires the constant expansion and modification of a firm, and many of the assets and activities connected to its corporate theory belong to others. So to compose the value that your theory reveals demands you make sound decisions about […]
In September 2009, Kraft, a company perhaps best known for its macaroni and cheese, made an unsolicited offer for Cadbury, the creator of the iconic Cadbury Easter Egg. Cadbury’s board of directors gave the offer a direct cut, and the U.K. public also proved very resistant to the idea of a U.S. firm buying a […]
Brilliant managers are bargain shoppers. As they shop for skills and knowledge in labor markets, parts, services, and other inputs in supply markets, and technology in patent and licensing markets, they seek to secure assets at prices below their value in an envisioned future use. A corporate theory guides this bargain hunter, revealing unique and […]