Corporate Strategy 3
oal of Corporate Strategy:Corporate Advantage
The goal of corporate strategy is to build
so as to earn above normal returns
analogous to a competitive advantage in a business unit
Three tests of the existence of
oes ownership of the business create benefit somewherein the corporation? (
oes parentage matter?)
re those benefits greater than the cost of corporateoverhead?
oes the corporation create more value with the businessthan any other possible corporate parent or alternativegovernance structure?
Source: Collis and MOntgomergy, 1998