All multi–business companies need a corporate–level strategy to provide a clear vision for managing current business and new investments. Strategy for the Corporate Level addresses both business and management strategy to help executives deal with major decisions relating to investment, acquisitions, market entry, supervision of management, and corporate centralization of activities.
Strategy for the Corporate Level uses three important logics to guide such decision–making: business logic, added value logic and capital markets logic. These key perspectives will enable executives to make more effective decisions about their business portfolio by providing a structure to approach each challenge.
Grounded in academic literature and using real–life examples from industry, Andrew Campbell brings us the latest on corporate–level strategy. This book will help readers to understand and address their concerns about corporate–level strategy and provide a range of perspectives to help make important strategic decisions.
This book is for executives with strategic responsibilities, as well as junior mangers and students looking to understand corporate–level strategy. It is of relevance to conglomerates, large focused companies and public sector organizations. Strategy for the Corporate Level comes complete with additional online resources, providing managers and students alike with all the tools they need to structure and review effective corporate strategy in organizations.
PART I INTRODUCTION AND HISTORY 1
Chapter 1 Strategy for the Corporate Level: Summary of the Main Messages 3
Chapter 2 Some History: From Boston Box to Three Logics that Drive Corporate Action 31
PART II PORTFOLIO STRATEGY: WHERE TO INVEST AND WHAT TO AVOID 73
Chapter 3 How to Find Good Businesses and Avoid Bad Businesses 75
The Business Attractiveness matrix 83
Chapter 4 How to Make Businesses More Successful 99
The Heartland matrix 104
Chapter 5 How to Buy Low and Sell High 117
Fair Value matrix 133
Chapter 6 Making Decisions about Where to Invest and What to Avoid 139
PART III WAYS OF ADDING AND SUBTRACTING VALUE FROM CORPORATE HEADQUARTERS 157
Chapter 7 Ten Sources of Value from Direct Influence 159
Chapter 8 Nine Sources of Value from Coordinating across Business Divisions 181
Chapter 9 Eight Ways Headquarters can Destroy Value 199
Chapter 10 How to Identify Sources of Added Value for Your Company 219
PART IV MANAGEMENT STRATEGY: HOW TO STRUCTURE, HOW MUCH TO CENTRALISE AND HOW TO GROW THE BUSINESS DIVISIONS 237
Chapter 11 Structuring the Organisation into Businesses and Divisions 239
Chapter 12 Corporate–level Strategy in Integrated Companies The Apple Example 259
Chapter 13 How Much to Centralise: Designing Corporate Headquarters 279
Chapter 14 Developing New Capabilities at Corporate Headquarters 303
Chapter 15 Encouraging Synergy and Cooperation across Business Divisions 321
PART V RETROSPECTIVE 331
Chapter 16 Lessons from 20 Years of Consulting Experience 333
Appendix The Links between International Strategy and Corporate–level Strategy 347