"A fundamental part of any firm's corporate strategy is its choice of what portfolio of business to compete in. According to the academic literature, this decision should reflect the 'superiority' of related diversification over unrelated diversification... This is because related diversification presumably allows the corporate center to exploit the interrelationships that exist among its different businesses (SBUs) and so achieve cost and/or differentiation competitive advantages over its rivals."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Constantinos C. Markides and Peter J. Williamson. "Related diversification, core competences and corporate performance." Strategic Management Journal 15.S2 (1994): p. 149
https://en.wikiquote.org/wiki/Strategic_management
Revision History
No revisions have been submitted for this quote.
Categories
Strategic management
9 quotes on TrueQuotesView all quotes by Strategic management →
Related Quotes
"Corporate strategy is the pattern of major objectives, purposes, or goals and essential policies and plans for achiev…"
"This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the va…"
"Strategy can be defined as the determination of the long-term goals and objectives of an enterprise, and the adoption…"
"Business strategy is the battleplan for a better future."
"Good mission statements focus on a limited number of goals, stress the company’s major policies and values, and defin…"
"Corporate strategy refers to the relationship between an enterprise and its environment. Strategy has two aspects. St…"
"Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the …"
"Strategy is about stretching limited resources to fit ambitious aspirations."
"There is no short game for a venture capitalist"
"Building products has become easier and cheaper, but building brands is harder than ever"