The Designed Relationship of a Business Unit and the Corporate Center: A global supply chain case study

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The Designed Relationship of a Business Unit and the Corporate Center: A global supply chain case study

ABSTRACT:– The objective of corporate strategy is typically to achieve financial expectations through the realization of growth synergies. To achieve this goal, corporate, location, product, service, support, and sales leaders continuously focus their attention on opportunity realization and organizational dimensional optimization. Vertical optimization focused on location profitability through superior service, strategic positioning, and operational excellence. Corporate and dimensional leaders try to position these business units in attractive markets with sustainable growth and high-earnings potential. Operational excellence is achieved through performance management, innovation leadership, a global presence, and class-leading workflows. Horizontal optimization focuses on product and service profitability optimization through the realization of cross-unit synergies that were efficiency and growth oriented. And so, what is the role of corporate in assisting business units to achieve financial expectations in such a global supply chain? This case study attempts to explain this role in terms of specific functions that are needed for sustained corporate advantage.

Keywords: systems; resource; patching; co-evolution; collaboration; synergies; diversified competition; corporate parenting

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