The one factor that company executives need not worry about when their company is managing many diverse, unrelated firms is ________.
A) staying abreast of what is happening in each industry and subsidiary.
B) picking business-unit heads who have the requisite combination of managerial skills and know-how to motivate people.
C) understanding the true value of strategic investment proposals by business-unit managers.
D) knowing what to do if a business unit stumbles.
E) "managing by the numbers"—that is, keeping a close track on the financial and operating results of each subsidiary.
B) picking business-unit heads who have the requisite combination of managerial skills and know-how to motivate people.
The greater the number of businesses a company is operating in and the more diverse those businesses are, the more difficult it is for corporate managers to (1) stay abreast of what is happening in each industry and each subsidiary; (2) pick business-unit heads having the requisite combination of managerial skills and know-how to drive gains in performance; (3) tell the difference between those strategic proposals of business-unit managers that are prudent and those that are risky or unlikely to succeed; (4) know what to do if a business unit stumbles and its results suddenly head downhill; and (5) "manage by the numbers"—that is, keep a close track on the financial and operating results of each subsidiary and assume that the heads of the various subsidiaries have most everything under control so long as the latest key financial and operating measures look good.
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