Académique Documents
Professionnel Documents
Culture Documents
and Diversification
DR M MANJUNATH SHETTIGAR
MA (ECON), MBA, MPHIL, PHD
Learning outcomes (1)
Retaliation
Legal
from
constraints
competitors
Economic
Constraints
(recession or
funding
crisis)
Consolidation & retrenchment
Managerial ambition.
Diversification and performance
Benefits:
Capturing more profits
Dangers:
Heavy investment
Drift into unrelated areas
Outsourcing
Envisioning Coaching
Providing central
services and Intervening
resources
Facilitating synergies
Ways of adding value
There are a number of ways in which the corporate parent can add
value.
By providing resources which the business units would not otherwise
have access to, such as investment and expertise in different markets.
By providing access to central services such as information technology
and human resources that can be made available more cheaply on an
organisation-wide basis due to economies of scale.
By providing access to markets, suppliers and sources of finance that
would not be available to individual units.
By improving performance through monitoring performance against
targets and taking corrective action.
Sharing expertise, knowledge and training across business units.
Facilitating co-operation and collaboration between business units.
Providing strategic direction to the business and clarity of purpose to
business units and external stakeholders such as shareholders.
By helping business units to develop either through assisting with
specific strategic developments or by enhancing the management
expertise.
Value-destroying activities
Parenting Matrix
BCG Matrix
BCG-matrix (aka growthshare matrix, Boston Box,
Boston matrix, Boston Consulting Group analysis,
portfolio diagram) is a chart that was created by Bruce D.
Henderson for the Boston Consulting Group in 1970 to help
corporations to analyze their business units regarding
profitability and future growth opportunities.