UTC's strategy of unrelated diversification
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In what ways does UTC's corporate-level strategy of unrelated diversification create value? Collect some recent information on UTC from sources like Yahoo! Finance. How successful has it been in pursuing its strategy?
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UTC's strategy of unrelated diversification is discussed in great detail in this solution.
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In what ways does UTCs corporate-level strategy of unrelated diversification create value? Collect some recent information on UTC from sources like Yahoo! Finance. How successful has it been in pursuing its strategy?
There are several ways in which United Technologies Corporation's corporate level strategy of unrelated diversification creates values. First the corporate level strategy of diversification is not as unrelated as it sounds. Each is technology related. The story goes that when Key TQM principles were applied to the Otis division of United Technologies Corporation, the same principles were applied to other divisions. In this case the TQM experience must be applicable to the other divisions. Yes, the company has diversified but to a degree all units are technology related. The current business units of United Technologies Corporation are Carrier, clipper, Hamilton Sundstrand, Otis, Pratt & Whitney, Sikorsky Aircraft, UTC fire and Security, and UTC Power. Each of these is a technology based business so that the personnel can transfer their knowledge from one business to another. In addition, United Technologies Corporation has a centralized research center that supports each business of United Technologies Corporation (Surhone). L, Tennoe. M, & Henssonow, S, 2011),
Value is created when United Technologies Corporation is able to transfer its experience from one business to another. The example provides that of transfer of TQM techniques. United Technologies Corporation has been able to control the inputs, leading to continuity and ...
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