Changes In Center Of Gravity
Changes in the center of gravity usually occur by a new star-up at a new center of gravity rather than by a shift in the center of established firms. Changing of gravity is difficult because it requires a dismantling of the current power structure, rejection of parts of the old culture, and establishing all new management systems.
The companies that are successful are those that began as downstream companies and established their center of gravity there.
Strategy And Structure
Each strategy has an associated organizational structure consistent with the above view of strategy and diversification. These relationships are summarized in the tale below.
|Vertical by Products||Functional with profit centers|
|Intermediate businesses||Mixed structures|
|Unrelated Businesses||Holding company|