Rethinking the role of the centre in the multidivisional firm: A retrospective

Nowadays, diversified companies or business groups are the norm rather than the exception. Most multibusiness or multi-unit firms are organised as a multidivisional firm (M-form firms). They are structured into semi-autonomous divisions or operating units that report to a corporate headquarters (CHQ) to guide, control and coordinate the group. There are many different ways to manage the role of such a corporate center. Also, over the past decades, these roles had to change, owing to the changing requirements from the business environment and new approaches to managing the roles.