Better Off or Far Off?
(2022) IBUH19 20221Department of Business Administration
- Abstract
- This thesis investigates how corporate diversification strategies are justified and hones in on the theoretical disagreement between two prominent diversification justification models: Porter’s Essential Tests and The Parenting Advantage Framework. The models aim to provide the same utility, namely to ascertain whether a corporate diversification effort will create or destroy shareholder value, however the conceptual discrepancy between the two leads to a fragmented picture of how to justify diversification strategies. This discrepancy is qualitatively studied through an embedded case study of ICA Gruppen and three of its diversification efforts, which are all individually subjected to the judgement of Porter’s Essential Tests as well as... (More)
- This thesis investigates how corporate diversification strategies are justified and hones in on the theoretical disagreement between two prominent diversification justification models: Porter’s Essential Tests and The Parenting Advantage Framework. The models aim to provide the same utility, namely to ascertain whether a corporate diversification effort will create or destroy shareholder value, however the conceptual discrepancy between the two leads to a fragmented picture of how to justify diversification strategies. This discrepancy is qualitatively studied through an embedded case study of ICA Gruppen and three of its diversification efforts, which are all individually subjected to the judgement of Porter’s Essential Tests as well as The Parenting Advantage Framework. The empirical findings suggest that the criteria stipulated by The Parenting Advantage Framework are harder to fulfil compared to Porter’s Essential Tests, however they are also insufficiently flexible to be applied to a multitude of different diversification strategies. Nevertheless, the findings also suggest that Porter’s Essential Tests are deficient of a critical assessment of the ownership role of the firm in diversification ventures, which instead is a strength of The Parenting Advantage Framework. The empirical findings and the advantages of the two justification models found in this thesis are merged in an attempt to create a united justification model, hence this study aims to contribute to the existing body of literature by alleviating the conceptual disagreement between Porter’s Essential Tests and The Parenting Advantage Framework. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9089418
- author
- Serlachius, Matilde LU ; Holmberg, Elsa LU and Paulsson, Axel LU
- supervisor
-
- Wenjun Wen LU
- organization
- course
- IBUH19 20221
- year
- 2022
- type
- M2 - Bachelor Degree
- subject
- keywords
- Corporate Diversification, Diversification Strategy Justification, Porter’s Essential Tests, Parenting Advantage, ICA Gruppen, Synergies
- language
- English
- id
- 9089418
- date added to LUP
- 2022-08-01 13:00:29
- date last changed
- 2022-08-01 13:00:29
@misc{9089418, abstract = {{This thesis investigates how corporate diversification strategies are justified and hones in on the theoretical disagreement between two prominent diversification justification models: Porter’s Essential Tests and The Parenting Advantage Framework. The models aim to provide the same utility, namely to ascertain whether a corporate diversification effort will create or destroy shareholder value, however the conceptual discrepancy between the two leads to a fragmented picture of how to justify diversification strategies. This discrepancy is qualitatively studied through an embedded case study of ICA Gruppen and three of its diversification efforts, which are all individually subjected to the judgement of Porter’s Essential Tests as well as The Parenting Advantage Framework. The empirical findings suggest that the criteria stipulated by The Parenting Advantage Framework are harder to fulfil compared to Porter’s Essential Tests, however they are also insufficiently flexible to be applied to a multitude of different diversification strategies. Nevertheless, the findings also suggest that Porter’s Essential Tests are deficient of a critical assessment of the ownership role of the firm in diversification ventures, which instead is a strength of The Parenting Advantage Framework. The empirical findings and the advantages of the two justification models found in this thesis are merged in an attempt to create a united justification model, hence this study aims to contribute to the existing body of literature by alleviating the conceptual disagreement between Porter’s Essential Tests and The Parenting Advantage Framework.}}, author = {{Serlachius, Matilde and Holmberg, Elsa and Paulsson, Axel}}, language = {{eng}}, note = {{Student Paper}}, title = {{Better Off or Far Off?}}, year = {{2022}}, }