To properly execute strategic controls in firms using related diversification, the executives must have a deep understanding of each unit's business-level strategy.

Question

Quizplus · Accepted Answer

Strategic controls involve monitoring and adjusting strategic plans to ensure they are being executed properly. In related diversification, the firm operates in multiple related businesses, so executives must understand the unique business-level strategy of each unit in order to effectively monitor and adjust their plans. Therefore, a deep understanding of each unit's strategy is necessary.

To Properly Execute Strategic Controls in Firms Using Related Diversification