Answered: d given a large measure of autonomy, to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The fundamental debate with regards corporate-level strategy is whether corporations are, and should be, run as federations of autonomous business units or as highly integrated organizations. Some authors argue that corporate strategists should view themselves as investors, with financial stakes in a portfolio of business units.

Each business unit should be judged on its merits and given a large measure of autonomy, to be optimally responsive to the specific conditions in its industry. However, other authors are at odds with this view, pointing to the enormous potential for synergy that is left untapped. They argue that corporations should be tightly knit groupings of closely related business units that share resources and align their strategies with one another. Discuss in the context of the Portfolio Organisation versus the Integrated Organisation Perspective.

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