Strategic Control a Framework for Effective Response to Environmental Change

Cover Strategic Control a Framework for Effective Response to Environmental Change
Strategic Control a Framework for Effective Response to Environmental Change
Peter Lorange
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Another reason may be that the divisions are so strong in themselves that the corporate level is more one of a holding company, with- out enough "muscle" to execute portfolio redistribution. Such a situation for example, frequently exists if the company was formed through the recent merger of a few relatively large companies, each of which manages to continue its autonomous mode of operation. A third reason might be that the top management lacks the power, philosophy, or willingness to take suc...h an active role in reshaping the company's portfolio.
A second set of reasons why the discretionary flexibility to carry out portfolio adjustments might be low rests with increasing government and/or trade union intervention when it comes to labor force adjustments, including alternative employment offerings. In several countries it has become very difficult or at least very costly, to scale down the labor force, thus impairing the curtailment of a business. Even the offering of alternative jobs within the same company (and same geographic region) might become difficult.


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