Strategy And Structure
Each strategy has an associated organizational structure consistent with the above view of strategy and diversification. These relationships are summarized in the tale below.
|Vertical by Products||Functional with profit centers|
|Intermediate businesses||Mixed structures|
|Unrelated Businesses||Holding company|
An organizations implements diversification must monitor and manage its strategy. The two major tools for managing diversification are organization structure and portfolio management techniques. How organziatio0ns structure can be used to manage a diversification strategy I discuss in detail in Chapter 3.
In Volume 2 I shall show portfolio management techniques that diversified organizations use to make decisions about those businesses to engage in and how to manage these multiple businesses in order to maximize corporate performance.