Earlier quoted context omitted.
I'd assume it was a move to make failure easier. Sclerosis is the natural fate of large corporations but variation and selection is an obvious way to help with that.
The danger of conglomerates that give so much freedom to their subsidiaries is that said subsidiaries start actually competing against each other and hurting the business overall.
Look at Blackberry, they had an internal project working against the rest of the company (namely Android on Blackberry hardware) that could, had it been allowed, saved the company. Instead Blackberry are either going to be purchased OR go bankrupt.
Honestly internal competition is an argument for doing something like this, not against it.