Corporate Level Strategy

Chapter 6 takes this a step further by standing back to consider strategy at a higher level of corporate strategy. The concern here is for the performance benefits that are derived from putting together an effective “portfolio of businesses”—that is, putting businesses together in a way that makes sense and can generate synergies between units. The discussion of this chapter builds toward a summary presented in Figure 6.4. It might be helpful to review that figure carefully before starting into the material of the chapter.

Chapter Summary: With continued merger and acquisition activity, this chapter is very important. Much of the chapter’s material is summarized in Figure 7.1, which can be used to help you mentally organize what you will learn in the chapter about mergers and acquisitions by examining reasons of acquisitions and problems in achieving success.

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