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Business Lessons from the Success & Failure Stories of Corporate Parenting | | Executive Summary The need and effectiveness of corporate parenting has been the center of numerous strategic decisions discussions for a multi-business organization for a long time now. The existence of a corporate parent, the management level which is directly not a part of consumer-facing and profit-making business units, carries a cost to the entire business. These costs that include corporate overheads due to mismatch in synergies among the SBUs, delays in decision processes etc., do not get strike out by any direct revenue streams of the business. Therefore, it becomes a necessity for a corporate parent to justify its existence as it looks to…show more content…
It has been able to counter the emerging challenges and turned some of them into opportunities by bringing together the expertise, acumen and experience of the organization as a whole. Internal Analysis The strategic mission of the corporate parent team has been to continually increase project profitability, stakeholder satisfaction and to enhance the effectiveness and efficiency of its business process. It was achieved through its umbrella initiative “Project Prithvi” that monitors & reports its economic, social and environmental performance as per Global Reporting initiatives and generating sustainable growth by progressively upgrading its capabilities, systems, processes and services at all SBUs. L&T has an international presence and are supported by a wide marketing& distribution network and strong customer support. The new structure of L&T is built around multiple businesses through a process of restructuring. The company follows a strict functional model and is structured around five significant verticals .Engineering & Construction is the largest vertical that accounts for 85% of total customer sales and provides integrated process technology. L&T has successfully sustained its competitive advantage in the E&C space. It invests heavily into its subsidiaries & associate companies

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