JOURNAL ARTICLE

WHY MULTIBUSINESS STRATEGIES FAIL AND HOW TO MAKE THEM SUCCEED.

  • Published In: Harvard Business Review, 2024, v. 102, n. 5. P. 138 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Anand, Bharat N.; Collis, David J. 3 of 3

Abstract

The article focuses on effective strategy formulation and management in multibusiness enterprises, emphasizing that corporations often err by concentrating too much on portfolio composition rather than on enhancing the performance of individual businesses. It presents a strategy continuum based on the relatedness of businesses within a portfolio, where different positions require distinct organizational structures, management processes, and approaches to value creation—ranging from highly unrelated conglomerates to closely related business units. Successful multibusiness firms align their corporate vision, portfolio choices, and organizational design with their position on this continuum, balancing trade-offs between synergy and autonomy. The article highlights common pitfalls such as overestimating synergies and portfolio fixation, and underscores that the core challenge lies in management execution rather than portfolio selection alone.

Additional Information

  • Source:Harvard Business Review. 2024/09, Vol. 102, Issue 5, p138
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:0017-8012
  • Accession Number:178978216
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