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Chapter 7

Corporate parenting

2.1 Corporate parenting

Corporate parenting looks at the relationship between head office and
individual business units. This will become more important if a business
follows the route of growth through acquisitions.

2.2 Styles (Goold and Campbell)

Strategic Strategic Financial

planning control control

CM set
Central Strategic
management decisions are financial

(CM) make made targets but
strategic collaboratively. don’t interfere
decision. with strategic
Some targets decisions.
Strategic must still be
business units met. SBUs make
(SBU) focus on strategic
implementation decisions to
of these. meet these.

2.3 How to add value

 Provide resources

 Provide central services

 Provide access to markets

 Monitor performance and solve problems

 Share expertise

 Facilitate collaboration and cooperation

 Help in strategic decision making and train senior management.

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