Neoclassical vs Managerial Flashcards

1
Q

Neoclassical

A

-> create shareholder value
1 synergies
- 1 warehouse not 2
2 undervalued firm
- maximise revenue
3 diversification / expansion
- new geographical area

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2
Q

Managerial

A

-> all acts of self interest
1 Hubris
- overpay / buy failing firm
2 Empire Building
- control of assets
3 Social Status

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