Pearce & Robinson, 10 th ed. Multi-business Strategy. Chapter 9. Learning Objectives. Understand the portfolio approach to strategic analysis and choice in multibusiness companies.
“balance” the flow of cash
resources among their various
businesses while identifying their
basic strategic purpose within the overall portfolio
Realizing synergies from shared capabilities and core competencies is a key way value is added in multibusiness companies.
1. Research suggests that figuring out if the synergies are real and, if so, how to capture those synergies is most effectively accomplished by business unit managers, not the corporate parent.
2. How can the corporate parent add value to its businesses in a multibusiness company?
influencing—or parenting—their businesses