Reaping the financial and strategic benefits of a divestiture by spin-off

Because of their remarkable history of financial success, corporate spin-offs are the subject of perennial interest and investigation. We critically review quantitative and case-based research to determine the conditions under which a spin-off divestiture provides beneficial results for the conglomerate, the newly independent subsidiary, and the stockholders. The shared goal of spin-off researchers is to understand the rationale for the financial success that spin-off firms and their newly disconnected conglomerates experience. Our review and synthesis of the findings include 30 years of academic research by scholars in strategic and business management, commercial research by independent researchers and consulting firms, and IRS and US Treasury documents that detail when a spin-off qualifies for a corporate tax-free exchange. Our central finding is that spin-offs, conglomerates, and stockholders benefit from tax-free divestiture and subsequent refocusing by the companies. The article explains the breadth of spin-off divestitures and the benefits of their success in the US. These results center on helping decision-makers recognize the situational factors that support the choice of a spin-off strategy.     

Achieving strategic benefits from project investments: Appoint a project owner

Even though we have gotten better at meeting the iron triangle of cost, time, and scope, many projects still do not achieve the strategic benefits—especially those that are nonmonetary—desired in most contemporary projects. Given that no one is specifically accountable for delivering these benefits, it should be no surprise that these projects are largely unsuccessful. We consider multiple possible candidates for this role of accountability—the CEO, the project manager, the sponsor, and the program manager—and find none of them acceptable, thereby necessitating the formalization of a new role: a project owner. The project owner would be accountable for delivering the strategic benefits desired from each project. In this article, we describe the responsibilities of the project owner at each phase of the project, the sources for candidates to fulfill this role, and the training needed for project owners to find success. We conclude with a case study of an organization that has taken this route and discuss the advantages and challenges that resulted from its strategic organizational change initiative.     

The evolution of strategic marketing

This article examines the evolution of the concept of strategic marketing. Strategic marketing does not replace traditional marketing management. Rather it adds new dimensions to the field of marketing, enhancing its role in the determination of corporate strategy.     

The art of strategic sales alignment

As companies move through the stages of their corporate life cycle, many fail to adjust their sales model to meet new business requirements. This article illustrates that problem with a case study of a major telecommunications organization and includes a three-step process that can be used during strategic planning and budgeting.     

The anatomy of strategic marketing planning

Strategic planning provides the focus for this two‐part “state of the art” review, to be published in consecutive issues of the Journal. Part one gives an overview of strategic planning and the different environments in which theategic planning process occurs. In part two the author considers the benefits and pitfalls associated with the implementation of a variety of strategic planning frameworks. The product life cycle, growth vector concept and growth share matrix are discussed, amongst others.     

The marketing and strategic planning interface

This article examines the potential contribution and implementational problems of developing marketing planning as a means to increase the marketing orientation of a company. It draws on the experience gained from a two year involvement in the design and implementation of a planning system for a large manufacturer, and reviews some of the literature on marketing and strategic planning. The focus is on the problems of managing the interface between strategic and marketing management, and the important role played by marketing information, the Chief Marketing Executive and the planning function in achieving effective and integrated strategic marketing planning.     

The strategic evolution of large US law firms

In recent years, large US law firms have been undergoing significant changes. Most have switched from a professional model (P2 form) to a corporate business model, employing competitive strategies and a profit orientation. As the market for corporate legal services became more competitive, many large US law firms began to diversify the services they offer and expand their operations into new geographic regions of the country and into international markets. They even engaged in acquisitions and learned to manage and leverage their critical resources, human capital and relational capital. As a result, most of these law firms have added more professional management. All in all, the services law firms offer and the rivals with which they must contend have changed substantially over the last 15 years.     

战略性贸易政策在中国的适用性分析

在美国次贷危机冲击之下,全球经济陷入低迷,美国等发达国家纷纷采用战略性贸易政策调整本国经济.本文从美国实践该战略的结果出发初步分析这一战略在中国的适用性.     

战略性贸易政策在中国的适用性分析

在美国次贷危机冲击之下,全球经济陷入低迷,美国等发达国家纷纷采用战略性贸易政策调整本国经济.本文从美国实践该战略的结果出发初步分析这一战略在中国的适用性.     

The strategic response of multinational enterprises to NAFTA

The North American Free Trade Agreement (NAFTA) incorporates both market liberalizing and market closing measures. For example, the apparel provisions of NAFTA will relieve Mexico of burdensome quotas in the North American market but will impose ultrastrict rules of origin upon the industry. Rugman and Gestrin develop a frame-work that explains paradoxes such as this one by distinguishing between measures that prompt production at the national level versus the regional level. Although their analysis only considers a few significant industries, their framework illuminates the agreement's impact upon virtually any sector of the North American economy.     

The strategic challenge of the evolving global economy

The world economy is in a period of rapid change. New market forces are emerging as the economic center of gravity continues moving westward toward the Orient. The technological revolution is likely to equal the industrial revolution in its impact on the global economy. How are industrial countries responding to these changing markets and technologies?