This course focuses on the link between organizational structure and strategy, making use of the microeconomic tools taught in MECN-430. The core question is how firms should be organized to achieve their performance objectives. The first part of the course takes the firm's activities as given and studies the problem of organizational design; topics may include incentive pay, decentralization, transfer pricing, behavioral biases, and complementarities. The second part examines the determinants of a firm's boundaries and may cover such topics as outsourcing, horizontal mergers, and strategic commitment.