The Influence of Corporate Strategy on Organizations

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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?

The relationship between the corporate parent and its SBUs. Signup and view all the answers

What is central to the performance and survival of companies?

The internal resources and competences of the corporations. Signup and view all the answers

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

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

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

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

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

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

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

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

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

Portfolio manager, Synergy manager, Parental developer Signup and view all the answers

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

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

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

By identifying and acquiring under-valued businesses Signup and view all the answers

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

Identifying opportunities for synergies across the group Signup and view all the answers

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

By identifying and acquiring under-valued businesses Signup and view all the answers

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

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

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

Operations manager Signup and view all the answers

What does strategic capability refer to?

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

What is the focus of knowledge management?

Processes of Knowledge Management Signup and view all the answers

What does the concept of Value Network aim to achieve?

Competitive Advantage Signup and view all the answers

What does SWOT Analysis assess?

Internal resources and capabilities Signup and view all the answers

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

Management Signup and view all the answers

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

Communication Signup and view all the answers

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

Leadership Signup and view all the answers

What emphasizes dealing with things rather than people?

Management Signup and view all the answers

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

Positivity Signup and view all the answers

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

Leadership Signup and view all the answers

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

Communication Signup and view all the answers

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

Creativity Signup and view all the answers

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

Trustworthiness Signup and view all the answers

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

Leaders Signup and view all the answers

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

Commitment Signup and view all the answers