Name: Mohammed Ismail Mohammed Fadhl

2012

May, 31,

Illustration 7.3 Berkshire Hathaway Inc.

2. Using the checklist explained in section 7.4, suggest how and in what ways Berkshire Hathaway may or may not add value to its shareholders?
Berkshire Hathaway can add value to its shareholders by the following:
1)

By diverting the businesses they are going to follow and let the down level managers follow the routine work that will help in increase the shareholders margin and value of the shares Add value to its shareholders by directly owning a diversified group of businesses that generate cash and consistently earn above average returns on capital. Follows Strategic control. Under this style the corporate parent leverages its resources and competences to build value for its businesses. Can act as a provider the financial resources when necessary.

2)

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