There are 9 roles of corporate parent justifying the

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There are 9 Roles of Corporate Parent, Justifying the Parent: Many of the business units in multibusiness companies could be viable as stand-alone entities: To justify its existence, the corporate parent must influence the business collectively to perform better than they would as stand-alone entities to generate better performance. Parenting Advantage: Parent companies compete with each other for the ownership of businesses: The objective of corporate strategy should be to add more value to the businesses in the portfolio than other rival parent organizations would to provide powerful objective for corporate strategy. Value Destruction: Senior corporate managers must divide their time between many businesses than their own management team. And they shouldn't intervene in business unless they have specific reason that add positive value to it. Lateral Synergies: The importance of lateral synergies in creating value and reduce amount of value destroyed in multibusiness companies through merges and real synergies opportunity. Value Creation: Occurs when a parent sees an opportunity for a business to
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