In addition managers with the ability and willingness to facilitate such

In addition managers with the ability and willingness

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knowledge that is integral for the overall performance and success of the business. In addition, managers with the ability and willingness to facilitate such transfers tend to come at a premium, while the staff to be transferred may also be unwilling to move from one business unit to the other. In some cases, top-level executives from the unit with transferable competencies may not approve such transfers necessary in fulfilling the organizational diversification objectives ( Ireland et al. 2011) . Furthermore, research has it that excessive dependence in resource outsourcing may reduce the benefits that accrue from such competencies and, therefore underplaying their transferability and usefulness from one business to another, in a highly diversified organization. 5.0 Recommendations Companies should seek corporate and operational relatedness simultaneously in order to attain economies of scope. Specifically, it is essential for firms to create economies of scope through operational relatedness or sharing activities and corporate relatedness or the transfer of core 4
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competencies between and among various business units ( Fan & Lang, 2000). In so doing, the company will be able to offset competition from rival brands by attaining a competitive edge as it is challenging to imitate the ability to create economies of scope by simultaneously implementing corporate and operational relatedness. Organizations need to use these corporate- level strategies to achieve strategic competitiveness by formulating and implementing a diversification strategy that creates value and improves the synergy between different business units. They need to integrate and coordinate various actions and commitments, for example, facilitating and promoting resource sharing in order to fully exploit the organizational core competencies and attain a competitive edge in the market. By adopting these corporate-level strategies, organizations will be able to create superior value to their customers in a way that is challenging for rival brands to imitate. 6.0 Implications for Practitioners CEO, executive leaders and other practitioners of strategic management need to shift their focus and create a real synergy between different business units so as to ensure the organization achieves better performance through economies of scope. Diversification through operational and corporate relatedness is seemingly the new feasible strategy in the ever-changing international market place as it relates to important strategic management factors that result in corporate success ( Sorrentino & Williams, 1995) . As such, practitioners need to be aware of these concepts and learn how they can apply them for better organizational outcomes. For example, if a company operates three businesses that have close links practitioners should seek to reduce possible diseconomies of scale by sharing activities or transferring core competencies. As such, most executive leaders will need to forego the autonomy of each unit operations and facilitate the sharing of resources between the core businesses to achieve better performance and above-average profits.
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