Final answer:
The statement is True. Corporate-level strategy in a diversified organization requires a common business strategy for each component business.
Step-by-step explanation:
The statement is True. Corporate-level strategy in a diversified organization requires a common business strategy for each component business.
In a diversified organization, there are multiple component businesses operating under the same corporate umbrella. These component businesses can vary in terms of products, markets, and business models. However, to ensure synergy and coherence within the organization, it is important to have a common business strategy that aligns the goals and objectives of each component business with the overall corporate strategy.
For example, if a diversified organization has a component business that focuses on technology products and another component business that focuses on healthcare services, even though the nature of these businesses is different, a common business strategy can still be developed to guide both businesses towards achieving their specific objectives within the overall corporate strategy.