Corporate Spheres of Influence Harvard Case Solution & Analysis

Traditional models for the development and management of corporate portfolios based on financial structures, business synergies, or using the key competencies in related businesses. In this article, the author goes beyond these traditional approaches and offers an alternative - the corporate sphere of influence. Like people, he says, companies build spheres of influence, which protect their cores, to project their power outward to weaken rivals and pave the way for future action. Recognizing the strategic purpose of each part of the portfolio, in the sphere of influence of the model focuses on the company's overall strategy, including how he wants to structure the sharing of product and geographic markets in the industry that it will consider the threats or ignored, and as a portfolio increases or reduces the competitive strategy or alliance. Thinking in terms of the construction of the sphere of influence of forces managers to approach corporate and business-level strategic analysis, which are often seen as separate. Enterprise-class anxiety about where to fight and business-level concern, with whom and how to fight it together in a single view. In this article, the author defines the components of the sphere of influence, and explains how leaders can use their database to determine the current scope of the company and their desired card. It offers examples of how the company managed their areas, based on a wide range of industries and companies, including Microsoft, Procter & Gamble, Johnson & Johnson, Anheuser-Busch, Nokia, Harley-Davidson, and Mexican cement company CEMEX. "Hide
by Richard A. D'Aveni Source: MIT Sloan Management Review 11 pages. Publication Date: July 1, 2004. Prod. #: SMR143-PDF-ENG

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