By Keith Ward, Andrew Kakabadse, Cliff Bowman
Designing international classification company techniques considers the foremost position of company centres inside of very huge, essentially multi-business organizations. at this time, those company centres are below assault as now not growing and cost and simply including price to their teams. The authors have built a company configurations version which demonstrates 4 ways that company centres can upload major worth. despite the fact that this calls for the centre to behave in particular methods reckoning on the exterior surroundings within which the crowd is working. Designing global classification company innovations is very readable, with loads of illustrative examples integrated within the textual content. educational references and theoretical underpinnings are positioned within the ultimate bankruptcy of the booklet, in order that the ebook is concentrated at the expert marketplace for procedure and growing price. *The examples used are from rather well identified multi-national organizations with a purpose to make the ebook beautiful in overseas markets. *Tackles very important concerns incorporating theoretical and functional dimensions.
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Extra info for Corporate Management & Strategy. Designing World Class Corporate Strategies
Example text
Where knowledge, insight and expertise can be leveraged into other areas of business, the corporation is exploiting economies of scope. Thus, by extending the scope of its operations into different products and/or markets, these knowledge assets can be more extensively exploited. 7 The underpinning economic rationales. 26 A corporate configurations framework Part I corporate centre will itself incur quite significant costs because of its direct intervention. The group must, therefore, gain benefits that more than outweigh these significant costs; the difference is that in the economies of scope configuration, the benefits are realised directly by the business units themselves through the exploitation of the knowledge advantage.
This challenge is explored in detail in Chapter 7 but, in some cases, the very success of a creative configuration can bring about its transition into the scope configuration, with its very different role for the corporate centre. Scope Under the scope configuration, the key role of the centre is to ensure that existing knowledge is leveraged to its full potential across the whole group. The centre seeks to achieve this by direct intervention in appropriate business units. This direct intervention may take the form of centralising a key process or activity, not in order to reduce its cost by achieving economies of scale, but so as to ensure that the best practice available within the corporation is applied throughout the group.
Either the mix of businesses again needs changing or the centre has to identify a new source of advantage that can be widely applied across the existing business units. This can present, at best, a timing problem as the focus of the corporate centre is on applying existing knowledge rather than creating new knowledge for the group. However, the generation of new corporate know-how is the main emphasis of the creative configuration and therefore this can be the most sustainable value-adding role for a corporate centre, particularly when allied to the problems faced by competitors in trying to copy such a values oriented, indirectly implemented, leadership role.