Final answer:
The claim that corporate-level strategy in a diversified organization requires a common business strategy for each component is false. Each business unit can have distinct strategies based on their competitive environment and core competencies, despite leveraging shared resources or core competencies at a corporate level.
Step-by-step explanation:
The statement that corporate-level strategy in a diversified organization requires a common business strategy for each component of business is false. Each component of a diversified organization may operate in different markets or industries and therefore can have distinct business strategies tailored to their specific competitive environments and core competencies.
Corporate-level strategy focuses on the scope of an organization and how value is added to the different business units, rather than implementing a common strategy across all units. While a focus on core competencies often leads to success, this does not necessarily imply that each unit within a diversified company needs to have the same business strategy. Core competencies can be leveraged across different business units, but each unit might have unique strategies to compete effectively in their respective markets.
Diversified firms that attempt to apply a one-size-fits-all strategy across all their business units may fail to address the unique challenges and opportunities present in different markets, thus hindering their overall success.