- Notes on Contributors
- The History of Strategy and Some Thoughts about the Future
- The Boundary of the Firm
- Evolutionary Theory
- Institutional Approaches to Business Strategy
- The Strategic Management of Technology and Intellectual Property
- Strategy and Valuation
- The Knowledge-Based View of the Firm
- Analysing the Environment
- Strategic Groups: Theory and Practice
- Scenario Thinking and Strategic Modelling
- Analyzing Internal and Competitor Competences: Resources, Capabilities, and Management Processes
- Dynamic Capabilities
- Formulating Strategy
- Organizational Learning
- Strategy in Service Organizations
- Why Diversify? Four Decades of Management Thinking
- The Rationale for Multi-SBU Companies
- The Role of the Parent Company
- Mergers and Acquisitions: Motives, Value Creation, and Implementation
- Cooperative Strategy: Strategic Alliances and Networks
- International Strategy
- Strategies for Multinational Enterprises
- Globalization and the Multinational Enterprise
- Managing Strategic Change
- Organizational Structure
- Strategy Innovation
- Game Theory In Strategy
- Strategy, Heuristics, and Real Options
- Strategic Flexibility Creating Dynamic Competitive Advantages
- Subject Index
- Name Index
Abstract and Keywords
In the last fifteen years greater recognition has been given to the importance of the CEO and top management in large, diversified companies. The sharp rise in their pay and their increasing public prominence are examples of this. The role of top management is now seen as being essentially entrepreneurial, in other words about wealth creation. An administrative view, involving control, monitoring, and coordination is now seen as insufficient. Top management needs to develop an economic logic for its role, one that explains why the company has chosen this portfolio of businesses, and why management has chosen this particular set of governance and internal management processes. This article explores this task of the top management of a diversified firm. First, it outlines a framework for thinking about wealth creation in a diversified firm. Second, it identifies some of the key dilemmas that the CEO and the top management group face.
C. K. Prahalad is the Paul and Ruth McCracken Distinguished University Professor, Ross School of Business, The University of Michigan, and Distinguished Fellow, William Davidson Institute, The University of Michigan. He studies the role and value added of top management in large, diversified, multinational corporations. He has been a visiting research fellow at Harvard, a professor at the Indian Institute of Management, and a visiting professor at the European Institute of Business Administration (INSEAD). Professor Prahalad, with Yves Doz, wrote The Multinational Mission: Balancing Local Demands and Global Vision (1987), and he is also the co-author of many articles that have appeared in the Harvard Business Review, including "Do You Really Have a Global Strategy?" (1985), "Collaborate with Your Competitors and Win" (1989), "Strategic Intent" (1989), "Core Competence of the Corporation" (1990), "Corporate Imagination and Expeditionary Marketing" (1991), and ‘Strategy as Stretch and Leverage’ (1993). "Strategic Intent" and "Core Competence of the Corporation" won McKinsey Prizes in 1989 and 1990, respectively. His paper "Dominant Logic," co-authored with Richard Bettis, was chosen as the best article published in the Strategic Management Journal during the period 1980-1988. His book Competing for the Future (1994) was co-authored with Gary Hamel.
Yves Doz is Associate Dean for Executive Education and Timken Chaired Professor of Global Technology and Innovation at INSEAD. He has been on the faculty at HBS, and held visiting appointments at Stanford and Aoyama Gakuin University in Japan. He has a doctorate from Harvard University and is a graduate of the Ecole des Hautes Etudes Commerciales. His research on strategy and organization of MNCs, examining high tech industries, has been published widely in such journals as the Strategic Management Journal and Harvard Business Review, in book chapters, and in books.
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