ABSTRACT
We now turn to corporate strategy and diversification. In terms of our model of strategic management, illustrated in Exhibit 10.1, decisions about corporate strategy and diversification are influenced by managers’ beliefs about the appropriate scale and scope of the business enterprise. Or, to put it differently, managers’ beliefs about the appropriate size and diversity of the firm and its businesses will be a key influence on the firm’s corporate strategy and the extent of its diversification. We will also show that successful corporate strategy and diversification require managers to develop beliefs about how their firms’ businesses are related to each other as well as how diversification and corporate strategy should be managed. Managers' Beliefs, Strategic Decisions, and Their Influence on Performance and Competitive Advantage https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203807620/f89dea2b-827e-4086-938f-a1efd759074c/content/fig10_1_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/>
