Consequences of Corporate Refocusing¶
Markides, C. C. (1992). Consequences of Corporate Refocusing: Ex Ante Evidence. Academy of Management Journal, 35(2), 398-412.
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Primes¶
- Sacrifice Periphery To Defend Core
- In business strategy it is divesting non-core units to concentrate capital on the core franchise, and deliberately cannibalizing declining products to fund successors.
This sourceFinds that divesting non-core units to refocus on the core business created market value for over-diversified firms, evidence for deliberate periphery-shedding to strengthen the core.
- In business strategy it is divesting non-core units to concentrate capital on the core franchise, and deliberately cannibalizing declining products to fund successors.
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