Chapter Four How to Make Businesses More Successful
Every owner of a business would like to make the business more successful. But the idea of added value as a prime criterion for helping decide which businesses to invest in did not emerge properly until the mid-1990s.
The concept is simple. A company should aim to invest in businesses or markets where it can add value: where its influence and support will help make the business concerned more successful. The test is whether the parent company can help the business grow faster, realise higher prices, reduce operating costs or increase asset utilisation?
The reverse is also true. If the parent company cannot add value in at least one of these ways, it should not seek to have a presence in ...
Get Strategy for the Corporate Level: Where to Invest, What to Cut Back and How to Grow Organisations with Multiple Divisions, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
