How a parent company adds value: Summary of Parental Value Creation. In their article, "From Corporate Strategy to Parenting Advantage", Michael Goold and Andrew Campbell argue the parent company should not only add value to a business unit, but add more value than any other potential parent - they call this parenting advantage.
Scala Parenting Corporate Strategy: The Quest for Parenting Advantage Andrew Campbell, Michael Goold, and Marcus Alexander Parenting advantage is the parent company that can create more value than any of rivals would if it owned the same same businesses.
Core Competence Concept - Build portfolios of Corporate strategy and parenting around shared technical and operating competencies - Develop structures and processes to enhance their core competence - Focused on the businesses in the portfolio and searched for a logic by examining how they are relate to one another The Parenting Framework - Fills in deficiencies of the core competence concept - It provide a rigorous ri gorous conceptual model model as well as the tools needed for an effective corporate-level planning process - Focused on the competencies of the parent organization and on the value create from the relationship between the parent and its businesses Structured analytical approach 1.
Examine the critical success success factors factors of each business business Document areas in the businesses in which performance performance can be improved Review the characteristics characteristics of the parent, group in a number of categories Test the judgements judgements against the results results that the businesses businesses achieve under the influence of the parent Parenting Opportunity: Parent must improve its businesses.
The parenting structures, systems, and processes: The mechanisms through which the parent creates value. How managers interact within the structure or process 3.
Corporate staff departments and central resources: The potential for central staffs and resources to create value depends on the circumstances in each business 4. Parents often create value because they have people with unique skills. Skilled division head or technical director can also be the parent s greatest source of value 5.
Decentralization contract between parent and business: Success and failure analysis: Useful way of summarizing a parent s track record by listing important decision and classifying each as a success, a failure, or neutral.
PIMS provide par performance statistics for a business.
Profitability that is much higher or lower than par level is a strong indication that the parent has had an impact.
The parent both creates and destroys value. Many edge-of-heartland businesses move into the heartland when the parent learns enough about the critical success factors to avoid destroying value by: The parent understands the business extremely well.
The parent may have added value in the past but can find no further parenting opportunities. The company has little potential for adding value.
It also has little potential for destroying the value. There is a danger that changes in the business environment can turn ballast businesses into alien territory. Managers should search their ballast businesses for new parenting opportunities that might move them into heartland or edge-of-heartland territory.
If that effort fail or if the parenting opportunities that are discovered fit better with a rival s characteristics, company should divest the ballast businesses as soon as they can get a price exceeds the expected value of future cash flows.
Frequently they are small and few in a portfolio. Businesses acquired as part of a larger purchase, or attempts to find new growth opportunities.
The reason not divested: The potential for upside gain often blinds managers to the misfit downside risks.The SDS Corporate Parenting Plan for - is shaped by extensive consultation and research, and recognises our existing good practice as well as identifying our key areas for improvement.
Corporate Parenting Strategy For Corporate Parenting - is the term used to refer to the collective responsibility of the Council to provide the best possible care and protection for children and young people who are “looked after”; that is, those who are in public care.
According to the parenting advantage concept, the main goal of corporate strategy should be to clarify where and how the corporate parent’s characteristics will fit best with the specific needs of individual business units, i.e., where the company can achieve and main-.
Virgin Corporate Strategy The Virgin Group Ltd is a group of separately run British companies with the Virgin brand under the leadership of English celebrity business tycoon Sir Richard Branson. If you're pregnant and want support, call 1 () or download the prenatal online submission form and email it to [email protected]
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"A vital and deeply researched contribution to thinking about corporate strategy." -Professor Gary Hamel London Business School This groundbreaking book on corporate-level strategy is the fruit of ten years of consulting and research with corporations in North America, Europe, and Japan.5/5(1).