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Strategy in Emerging Markets by Anders Pehrsson

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ELEVEN

Corporate Structure and Integration: Cable & Wireless vs. Netcom Systems

In the framework of strategic business units, formulation of corporate strategy usually applies to product and market issues relevant to an entire company group, while business strategy defines the choice of product, or service, and market of an individual business. Furthermore, Chakravarthy and Lorange (1991) talk about hierarchies of strategies, which are to be elaborated within the hierarchical strategic structure. On the corporate level, the main task, in theory, is to determine relationships among business families. This can be examined in several ways. Questions that may be asked include: Is there a satisfactory mix of mature and new businesses and between high-risk/high-return, ...

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