Remake of Strategy and Business Development 4a by https://padlet.com/iklein1/smxllgwz6myf Question 1: We just discussed that the corporate parent takes an intermediate role between investors and the firm’s individual businesses. With this in mind, please reflect on why – from a strategic perspective and under the assumption that the objective of strategy is to maximize profits – is the role of the corporate parent a problematic one? en-us 2019-04-08 09:56:32 UTC 2019-04-12 07:53:29 UTC hello@padlet.com Answer https://padlet.com/iklein1/smxllgwz6myf/wish/351067955 The corporate parent might feel pressure from shareholders (short or long term investors). The corporate parent might then act more in the interest of them instead of the businesses' strategic and development interests.]]> 2019-04-12 07:48:28 UTC https://padlet.com/iklein1/smxllgwz6myf/wish/351067955 Answer https://padlet.com/iklein1/smxllgwz6myf/wish/351068143 If the goal of the company is to maximize shareholders' profit, and the value comes from the businesses, the corporate parent, as an intermediate, doesn't really create any value. ]]> 2019-04-12 07:49:24 UTC https://padlet.com/iklein1/smxllgwz6myf/wish/351068143 The corporate parent might decide which of the businesses should make profit and which should not, in terms of what the shareholders want at the current time. https://padlet.com/iklein1/smxllgwz6myf/wish/351068590 2019-04-12 07:52:21 UTC https://padlet.com/iklein1/smxllgwz6myf/wish/351068590 https://padlet.com/iklein1/smxllgwz6myf/wish/351068764  Maximizing the overall profit of the corporation, may results in negative effects on the individual firm. E.g. one firm may not generate enough profit, and therefore it may be sold or prioritized very low by the corporation. The investors e.g. the management is looking to maximize profit and therefore they can not take actions that is in the best interest of all firms. 

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