H-Form (Conglomerate Design)
Challenges
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- Acquiring Problems
- Staffing Problems
- Accounting Issues
- Hard To Be the Best
- Hard to Evaluate
- True Value May Be Realized by a Breakup
- Bottom Line
Phuong Tang - Quỳnh Nghi - Thu Le - Melisa Bal - Yves Dounou - Berk Korkmaz
Definition and Characteristics
Disadvantages of Structure
Examples
• Organization consists of a set of unrelated businesses with general manager for each one.
• H-form is similar to product departmentalization.
• Coordination is based on the allocation of resources across companies in the portfolio.
• Conglomerates can experience difficulties due to management's lack of multi-industry knowledge.
- Complex to manage
- Integrate activities across large numbers of operations Difficult
- Achieve only average to weak financial performance
- H-Form is a certificate issued as proof of Export. This form can be obtained from sales tax dept.
- In Eu , all the companies have an Unique Identification Number which is is important when it’s come to deal out of your origin country in EU
Advantages of Structure
References
- Alignment of corporate and divisional goal
- Functional expertise and efficiency
- Adaptability and flexibility in division
- Reduction of investment risk.
- Creates an internal capital market
- Promotes entrepreneurial approach
- Free corporate to focus on strategic concern
- Facilitates diversification and growth
- http://caclub.in/use-of-c-form-f-form-and-h-form-under-cst/
- http://www.investopedia.com/articles/basics/06/conglomerates.asp
- http://smallbusiness.chron.com/characteristics-conglomerate-company-73522.html
- http://www.slideshare.net/m5hafiq/griffin-chap12