Parenting Advantage
(Goold, Campbell)

Knowledge Center

   

How can a parent company (help) create value? Explanation of Parenting Advantage of Goold and Campbell.

Contents

Premium

What is Parenting Advantage? Description

The Parenting Advantage model is a framework that describes how a parent company can (help) create value. In their article, "From Corporate Strategy to Parenting Advantage", Michael Goold and Andrew Campbell argue that the parent company should not only add value to a business unit, but add more value than any other potential parent - they call this: "Parenting Advantage". In their book: "Corporate-Level Strategy: Creating Value in the Multibusiness Company", they mention four types of parental value creation:


Four types of parental value creation

  1. Stand-alone influence. Each subsidiary is viewed as a separate profit center. Using basic performance targets, the businesses are controlled and monitored. Value creation is provided by making strategic decisions such as the appointment of managers and approving major capital expenditures.

  2. Linkage influence. Value is created by improved co-operation and synergy benefits.

  3. Central functions and services. Corporate value is created through the provision of administrative and managerial services to the businesses.

  4. Corporate development. Value creation through portfolio management.

Some authors have claimed the role of the corporate center should be minimal. Hedley: The overarching role of the corporate level is that of portfolio manager: to manage the allocation of scarce financial resources amongst the business units. Others, such as Hamel & Prahalad, have emphasized the importance of synergy: The corporate center should not be just another layer of accounting, but must add value by enunciating the strategic architecture.


Which type of influence is best to maximize value creation? The answer is complex and can be determined upon a number of factors. These factors include, but are not limited to: corporate purpose, history and culture. Furthermore the answer depends upon the reconciliation of multiple paradoxes of parenting advantage: Control versus Empowerment, Responsiveness versus Synergy, Portfolio versus Core Competence.


Book: Michael Goold and Andrew Campbell - Corporate-Level Strategy -


Parenting Advantage Special Interest Group


Special Interest Group (674 members)


Parenting Advantage Forum  

Recent topics

  Global Managers in MNCs Should Occasionally Check Local Managers      
 
  Strategic Business Plan for a Holding Company      
 
  Parenting Value versus Diversification by Shareholders      
 

Best Practices - Parenting Advantage
  Create or Destroy Values?
     
 
  Relationship Parent and SBU's
     
 

Expert Tips - Parenting Advantage
 

Checklist of Parenting Possibilities

 
 
 

Diversification Pitfalls

 
 
 

What is the Optimal Size for a Corporate Center?

 
 
 

A Corporate Theory: Long-term Handhold and Guidance in Turbulent Times?

 
 
 

How a Corporate Center can impact the Strategies of its SBU's

 
 
 

An important Notice about Parenting Value!

 
 
 

What is the Best Location of a Corporate Center?

 
 
 

How can one Assess the Fit Between a Parent Company and its Businesses?

 
 



Advance yourself in business administration and management



Resources - Parenting Advantage

Synergy Estimation

 

Size, Structure and Performanc

 

Definition, Differences and Relationships between Resources, Capabilities, Competencies and Core Competencies

 

Strategic and Portfolio Management and Corporate Organization

 
 

News about Parenting Advantage


     
 

News about Corporate Center


     
 

Videos about Parenting Advantage


     
 

Videos about Corporate Center


     
 

Presentations about Parenting Advantage


     
 

Presentations about Corporate Center


     
 

Books about Parenting Advantage


     
 

Books about Corporate Center


     
 

More about Parenting Advantage


     
 

More about Corporate Center


     



Accelerate your management career



Compare with: Parenting Styles  |  Resource-Based View  |  Competitive Advantage  |  Core Competence  |  Centralization and Decentralization  |  BCG Matrix  |  Growth Phases  |  Distinctive Capabilities  |  Bricks and Clicks  |  Organizational Configurations  |  3C's  |  Acquisition Integration Approaches  |  Office of Strategy Management


Return to Management Hub: Change & Organization  |  Communication & Skills  |   Leadership  |   Strategy  |  Supply Chain & Quality


More Management Methods, Models and Theory

Special Interest Group Leader

















About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V14.1 - Last updated: 18-10-2018. All names ™ of their owners.