Many enterprises with multiple businesses struggle with strategy because they focus too much on portfolio composition and not enough on enhancing the individual businesses. Successful multibusiness firms understand this and align their structure and management processes with their chosen sources of value creation.
Enterprises that own multiple businesses often have a flawed approach to strategy: They focus too much on the makeup of their portfolios and too little on enhancing the businesses in them.
Strategies for adding value to a corporation’s businesses fall on a continuum. On one end the businesses in the portfolio are completely unrelated; at the other they have many similarities. Each place on the continuum requires a different kind of organizational structure and specific management processes to support it.
STRATEGY EXECUTION PORTFOLIO MANAGEMENT CORPORATE ORGANIZATION VALUE CREATION
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