Corporate Strategy: The Core Concepts

  • A. C. Hax
  • N. S. Majluf


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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    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
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    John P. Kotier, The Leadership Factor (New York, NY, The Free Press, 1988).Google Scholar
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    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
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    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
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    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
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    Kathryn Rudie Harrigan, Strategic Flexibility: A Management Guide for Changing Times (Lexington, MA, Lexington Books, 1985);Google Scholar
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    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
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    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
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    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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