The Influence of Corporate Strategy on Organizations
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Questions and Answers

What is the Finance Director's claim regarding the divested businesses within the multinational corporation's portfolio?

  • None of them succeeded after being divested.
  • They all performed better on their own or with another corporate parent. (correct)
  • The corporate parent did not add value to any of the divested businesses.
  • Their performance did not change after being divested.

    • What does the Finance Director highlight as the risk for a corporate parent if it does not add value to its business units?

  • It becomes a strategic partner for the business units.
  • It becomes an innovative leader for the business units.
  • It becomes a profit center for the business units.
  • It becomes a cost to the business units and reduces their value. (correct)

    • Why is it important for corporate parents to ensure they add value rather than destroy it?

  • To reduce the performance of their business units.
  • To improve the survival and performance of companies. (correct)
  • To attract potential investors.
  • To increase their own costs.

    • What influences investors' choices between different corporations?

    <p>The relationship between the corporate parent and its SBUs.</p> Signup and view all the answers

    What is central to the performance and survival of companies?

    <p>The internal resources and competences of the corporations.</p> Signup and view all the answers

    What is the role of a corporate parent according to the Finance Director?

    <p>To add value to its business units and ensure their survival.</p> Signup and view all the answers

    What is the role of the parent company as a portfolio manager?

    <p>The parent company focuses on identifying and acquiring under-valued businesses to add to the group's portfolio.</p> Signup and view all the answers

    What is the main responsibility of divisional managers in very large organizations?

    <p>To provide an intermediate level of management between the SBU and the corporate parent.</p> Signup and view all the answers

    What is the role of the parent company as a synergy manager?

    <p>The parent company identifies opportunities for synergies across the group.</p> Signup and view all the answers

    What are three different ways that a parent company can add value to a group?

    <p>Portfolio manager, Synergy manager, Parental developer</p> Signup and view all the answers

    What does the parent company's role as a portfolio manager entail?

    <p>Acting as a corporate manager and buying and selling SBUs depending on corporate strategy choices.</p> Signup and view all the answers

    What is one way a parent company can add value as a portfolio manager?

    <p>By identifying and acquiring under-valued businesses</p> Signup and view all the answers

    What does a synergy manager focus on in the role of a parent company?

    <p>Identifying opportunities for synergies across the group</p> Signup and view all the answers

    In what ways can a parent company manage a portfolio of investments as mentioned in the text?

    <p>By identifying and acquiring under-valued businesses</p> Signup and view all the answers

    What is one responsibility of divisional managers in very large organizations according to the text?

    <p>To provide an intermediate level of management between the SBU and the corporate parent</p> Signup and view all the answers

    What is NOT a role performed by a parent company for a group according to the text?

    <p>Operations manager</p> Signup and view all the answers

    What does strategic capability refer to?

    <p>The company's strengths in terms of people, resources, skills, and capacities</p> Signup and view all the answers

    What is the focus of knowledge management?

    <p>Processes of Knowledge Management</p> Signup and view all the answers

    What does the concept of Value Network aim to achieve?

    <p>Competitive Advantage</p> Signup and view all the answers

    What does SWOT Analysis assess?

    <p>Internal resources and capabilities</p> Signup and view all the answers

    What is the process of dealing with or controlling things or people?

    <p>Management</p> Signup and view all the answers

    Which skill involves the ability to disseminate information and listen actively?

    <p>Communication</p> Signup and view all the answers

    What is the action of leading a group towards a common goal?

    <p>Leadership</p> Signup and view all the answers

    What emphasizes dealing with things rather than people?

    <p>Management</p> Signup and view all the answers

    What skill involves keeping a positive attitude regardless of the situation?

    <p>Positivity</p> Signup and view all the answers

    Which attribute inspires others to share a vision and motivates them to act on that vision?

    <p>Leadership</p> Signup and view all the answers

    Which skill involves being able to manage and communicate what needs to be done?

    <p>Communication</p> Signup and view all the answers

    What skill involves being open to taking chances and thinking creatively?

    <p>Creativity</p> Signup and view all the answers

    What attribute involves instilling a sense of trust before asking others to follow?

    <p>Trustworthiness</p> Signup and view all the answers

    Leaders ask questions, show people what to do, and develop power with people. These attributes are associated with:

    <p>Leaders</p> Signup and view all the answers

    Which attribute involves being committed to the project and not holding too tightly to anything?

    <p>Commitment</p> Signup and view all the answers

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