Exam 13: Implementing Corporate Strategy: Managing the Multibusiness Firm

The success of Berkshire Hathaway over the past five decades under the leadership of Warren Buffett may be attributed primarily to:

Corporate governance is:

Implementing corporate strategy mainly involves the relationships between the corporate headquarters and the individual businesses.

Besides managing the overall corporate portfolio of businesses, corporate management can add value to individual businesses by:

What are the two dimensions of the Ashridge portfolio display?

Most multibusiness companies have a dual planning process: strategic planning focuses on the short and medium term, financial planning on the medium to long term

A key challenge for the strategic planning systems of large corporations is reconciling top-down strategic leadership with bottom-up strategy initiatives.

"Restructuring" is a corporate strategy that involves acquiring companies then intervening to cut costs, divest assets, revise competitive strategies, and adjust financial structure. {see pp.323-324]

The fundamental issue that Implementing corporate strategy addresses is:

The concept of "parenting advantage" is best summarized by the following statement:

Sharing resources and activities between business units can often impose costs which exceed the value of the synergies gained.