Case Analysis Study Example | Topics and Well Written Essays - 1000 words - 7

Analysis - Case Study Example The section discusses how the unrelated strategy of the UTC adds value to the company. Unrelated diversification is important in enabling companies reap benefits from a central management. UTC ensures that its business gain value by auditing their strengths and weaknesses through its elaborate Total Quality Management strategy. The parent corporation ensures that its businesses are operating optimally. For example, the case of elevator failures in Japan was effectively solved through TQM. A parent corporation is objective in identifying failures in its businesses and thus is efficient in finding solutions. Unrelated diversification also offers UTC strategic advantage of identifying the best practices for its companies to mitigate business risks. The situation implies that the corporation can use strategies that have succeeded in one of its business to run another business. Also, the corporation learns for the strategies that have failed in several businesses to avoid them in the future. The result is a more successful and valuable business. For example, UTC uses TQM as its main approach to avoid product failures. The strategy worked well or elevator problems in Japan; hence, the corporation documented it as one of its best practices. As noted above, UTCs best practices are transferred to all its companies. UTC has employed several process disciplines and an elaborate research and development. Also, the corporation benefits from diverse skills and competencies across different industries. These competencies enable UTC to internally manage the human resources, across all its companies. Top performers can be sent to failing companies to improve their prospects. According to Duhaime, Stimpert & Chesley (2012), unrelated diversification allows corporations to invest in business that have little or no process technologies that can result in synergies. The reason or this is that businesses operate in different industries, and hence there are not similarities