Although some studies consider the impact of extensions on the parent brand (John, Loken, and Joiner 1998; Loken and John 1993), brand extension research primarily has focused on identifying the factors that define successful brand extensions. Beginning with Aaker and Keller’s (1990) work, researchers have viewed the fit between a parent brand and the extension category as a determinant of the success of the extension.
Executives of multibusiness firms are increasingly using management control systems (MCS) to align corporate strategy with organizational structure to create synergies across business units. Senior managers find that it is no longer practical to expend vast resources to continually restructure their organizations in order to align with changes in strategy and environmental conditions (Luke, Walston and Plummer, 2004). Instead, more organizations are learning a far more effective approach–choose an organizational structure that works without major conflicts, and then design MCS to align that structure with strategy (Kaplan and Norton, 2006).