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