Question: When business - unit managers inability to remain informed across multiple business units leads them to blame poor performance on difficult competitive conditions, even when
When businessunit managers inability to remain informed across multiple business units leads them to blame poor performance on difficult competitive conditions, even when it is the result of their inability to craft a successful business model, organizational problems increase. Top managers must spend an enormous amount of time and effort to solve them which increases bureaucratic costs and cancels out the profitenhancing advantages of pursuing diversification, such as those obtained from sharing or leveraging competencies.
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