| acquisition | The incorporation of one firm into another through purchase.
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| core competencies | A firm's strategic resources that reflect the collective learning in the organization.
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| divestment | The exit of a business from a firm's portfolio.
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| economies of scope | Cost savings from leveraging core competencies or sharing related activities among businesses in a corporation.
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| joint ventures | New entities formed within a strategic alliance in which two or more firms, the parents, contribute equity to form the new legal entity.
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| market power | firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment.
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| merger | The combining of two or more firms into one new legal entity.
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| parenting advantage | The positive contributions of the corporate office to a new business as a result of expertise and support provided and not as a result of substantial changes in assets, capital structure, or management.
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| portfolio management | A method of (1) assessing the competitive position of a portfolio of businesses within a corporation, (2) suggesting strategic alternatives for each business, and (3) identifying priorities for the allocation of resources across the businesses.
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| related diversification | A firm entering a different business in which it can benefit from leveraging core competencies, sharing activities.
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| restructuring | The intervention of the corporate office in a new business that substantially changes the assets, capital structure, and/or management, including selling off parts of the business, changing the management, reducing payroll and unnecessary sources of expenses, changing strategies, and infusing the new business with new technologies, processes, and reward systems.
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| sharing activities | Having activities of two or more businesses' value chains done by one of the businesses.
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| strategic alliance | A cooperative relationship between two or more firms.
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| vertical integration | An expansion or extension of the firm by integrating preceding or successive productive processes.
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