This course examines the economic factors underlying value creation in corporate strategy. We explore the role of transaction costs, agency costs, complementary assets, spillovers, and organizational rigidity in the context vertical integration, horizontal diversification, geographic expansion, M&A, and alliances. Students who take this course will develop a sophisticated basis for evaluating corporate strategy questions. Classroom time is devoted primarily to lively discussion of the cases and assigned readings. Grades are based on class participation, two team case write-ups and a final exam or final project.