Which strategic focus enables organizations to grow by leveraging different business units effectively?

Prepare for UCF's MAN4720 Strategic Management Capstone Midterm with detailed quizzes, flashcards, and comprehensive explanations. Ensure your success with targeted preparation.

The choice of synergistic growth as the correct answer highlights the concept of maximizing the collective strengths of different business units to drive overall growth. Synergistic growth refers to the ability of a company to grow by integrating and leveraging various business units in such a way that the combined effect is greater than the sum of their individual contributions. This can involve sharing resources, technologies, and market access among business units, which can create value and foster innovation.

For example, when different units collaborate on projects or share research and development findings, they can achieve improved efficiencies, enhanced product offerings, and greater market presence. This strategic focus is particularly valuable in diversified organizations where distinct business lines can benefit from one another's capabilities, reducing costs and enhancing competitiveness.

In contrast, vertical integration involves gaining control over different stages of production or distribution within the same industry, which may not inherently leverage the diverse strengths of distinct business units. Horizontal integration focuses on expanding within the same level of the supply chain, often through mergers or acquisitions, which primarily aims at increasing market share rather than creating synergies across diverse business units.

Resource re-allocation refers to reallocating resources within the organization, which, while important for efficiency and innovation, does not inherently imply the strategic integration and leveraging of multiple business

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