A New playbook for diversified companies

27/11/2022

A New playbook for diversified companies

Ulrich Pidun, Ansgar Richter, Monika Schommer, and Amit Karna

Journal Articles | MIT Sloan Management Review

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When do diversification strategies pay off? (1) Multi-business companies can enhance performance by developing a cohesive set of business and operating models. (2)Diversifiers also do well to tailor their corporate parenting strategy to the needs of their business units. (3) Assigning clear roles to each unit and allocating capital accordingly can help companies translate strategy into action.

IIMA