ABSTRACT
In the framework of strategic business units, formulation of corporate strategy usually applies to product and market issues relevant to an entire company group, while business strategy defines the choice of product, or service, and market of an individual business. Furthermore, Chakravarthy and Lorange (1991) talk about hierarchies of strategies, which are to be elaborated within the hierarchical strategic structure. On the corporate level, the main task, in theory, is to determine relationships among business families. This can be examined in several ways. Questions that may be asked include: Is there a satisfactory mix of mature and new businesses and between highrisk/high-return, and low-risk/low-return businesses? What is the nature of the overall pattern of funds flow? How do the businesses support each other in terms of human resources, know-how, and distinctive expertise? In particular, the organization at this level is finding out how the pieces all fit together.
