Corporate Management of the Value of Business Units: Discrepancies and Ways to Overcome Them

Abstract :

Ensuring the successful operation of a conglomerate corporation and attaining the efficiency of its activity requires not just the development and implementation of a general corporate strategy but also the efficient management of the company’s business portfolio and adequate distribution of resources across its major business areas and divisions – with a view to developing existing and cultivating new competitive advantages for it. A key precondition for the proper interaction between the corporate and business levels is the ability to properly assess the prospects for growth in the value of particular businesses based on the corporation’s “parent abilities” matching the needs of business units that make it up.