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Corporate Strategy: The Core Concepts

  • A. C. Hax
  • N. S. Majluf
Chapter

Abstract

In a formal strategic planning process, we distinguish three perspectives — corporate, business, and functional. These perspectives are different both in term of the nature of the decisions they address, as well as the organizational units and managers involved in formulating and implementing the corresponding action programs generated by the strategy formation process.

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Notes

  1. [1]
    For a comprehensive review of the concepts and methodologies associated with the three strategic perspectives — corporate, business, and functional — see Amoldo C. Hax, and Nicolas S. Majluf, The Strategy Concept and Process: A Pragmatic Approach, (Englewood Cliffs, NJ, Prentice Hall, 1991).Google Scholar
  2. [2]
    Gary Hamel and CK Prahalad “Strategic Intent”, Harvard Business Review (May-June 1989) 63–76.Google Scholar
  3. [3]
    Edgar E. Schein, Organizational Culture and Leadership, 2nd ed. (San Francisco, CA, 1992);Google Scholar
  4. [3a]
    John P. Kotier, The Leadership Factor (New York, NY, The Free Press, 1988).Google Scholar
  5. [4]
    A related important topic to leadership is the issue of power. From this point of view, management is perceived as a political process addressing the creation, exercise, retention, and transfer of power. Power plays the central role in the implementation of strategy by influencing people’s behavior, making them to do things that otherwise would not do, and changing the course of events. For an excellent treatment of the subject, see Jeffrey Pfeffer, Managing with Power: Politics and Influence in Organizations (Boston, MA, Harvard Business School Press, 1992).Google Scholar
  6. [5]
    For two different typologies on corporate strategy and managerial tasks, see Michael E. Porter, “From Competitive Advantage to Corporate Strategy”, Harvard Business Review (May-June 1987, Vol. 65, No. 3) 43–59; andGoogle Scholar
  7. [5a]
    Andrall E. Pearson, “Six Basics for General Managers”, Harvard Business Review (July-August 1989, Vol. 67, No. 4) 94–101.Google Scholar
  8. [6]
    For a treatment of the role of the value chain in obtaining competitive advantage, as well as the use of the value chain as a unit of analysis in achieving horizontal integration, see Michael E. Porter, Competitive Advantage (New York, NY, The Free Press, 1985).Google Scholar
  9. [7]
    Some sources for the topic of vertical integration are: John Stuckey, and David White, “When and When Not to Vertically Integrate”, Sloan Management Review (Spring 1993) 71–83;Google Scholar
  10. [7a]
    Kathryn Rudie Harrigan, Strategic Flexibility: A Management Guide for Changing Times (Lexington, MA, Lexington Books, 1985);Google Scholar
  11. [7b]
    Gordon Walker, “Strategic Sourcing, Vertical Integration and Transaction Costs”, Interfaces, 19 (May-June 1988) 62–73; andCrossRefGoogle Scholar
  12. [7c]
    David J. Teece, “Profiting from Technological Innovations: Implications for Integration, Collaboration, Licensing, and Public Policy,” David J. Teece, ed., The Competitive Challenge: Strategies for Industrial Innovations and Renewal (Cambridge, MA, Ballinger Publishing Co., 1987).Google Scholar
  13. [8]
    For an excellent presentation on the nature, process and management of restructuring, see Gordon Donaldson, Corporate Restructuring, Managing the Change Process from Within (Boston, MA, Harvard Business School Press, 1994).Google Scholar
  14. [9]
    For a discussion of ‘organizational architecture’, see David A. Nadler, Marc S. Gerstein, Robert B. Shaw, and Associates, Organizational Architecture: Designs for Changing Organizations (San Francisco, CA, Jossey-Bass, 1992).Google Scholar
  15. [10]
    William Taylor, “The Logic of Global Business: An Interview with ABB’s Percy Barne-vik”, Harvard Business Review (March-April 1991, Vol. 69, No. 2) 91–105.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1997

Authors and Affiliations

  • A. C. Hax
  • N. S. Majluf

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