Diversification and middle managers practices

: the case of Aston Martin’s new SUV and Mid-engine segments

Abstract

Scholars have been focused on research about diversification and top management. However, middle managers have been given more attention due to their privileged intermedium position in organisations. Despite so, they are still associated with the role of implementation and still little is known about other roles they have in strategy. In addition, most firms are only present in a single industry. They can thus pursue diversification towards new industries or new product categories within the same industry. This is the case of Aston Martin Lagonda who recently diversified towards new segments with no prior presence (SUV and Mid-engine segments) requiring the necessity of development of new resources and capabilities. Given that, this research aims to understand how diversification strategy affects middle managers in terms of understanding their roles, activities and tools used in the process of diversification. As so, it attempts to demonstrate their activities and their importance in this process under the lens of Strategy as Practice literature focusing on strategy as something people do rather than organisations have. Interviews and comparison between the new segments were made and middle managers importance has been demonstrated as present in the formulation and execution of the diversification strategy. Besides that, it was found that their roles change depending on whether diversification is done through an internal or external development strategy, having also great contribution in the development of new competences.

Date of Award	6 Oct 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Alexandre Morais (Supervisor)