Back in the 1970s, corporate strategy was largely seen as akin to managing an investment portfolio, in which the corporation allocated capital to different business units as efficiently as possible. The idea was in part that corporate managers were better placed to make well-informed decisions about allocating capital across business opportunities than financial investors. And given thinner capital markets, they needed to carefully balance businesses that generated cash with businesses that consumed it.
6 Factors Driving Changes to Today’s Corporate Strategies
Competitive advantages don’t last as long as they used to.
June 07, 2022
Summary.
Strategy is a competitive game, which always evolves in response to competition. But the magnitude of the changes in the technological, social, and natural environment are such that corporate strategy will need to be qualitatively reinvented again for new circumstances. This article discusses six factors are driving these changes: 1) dynamism, 2) uncertainty, 3) contingency, 4) connectedness, 5) contextuality, and 6) cognition.
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How to develop a winning strategy—and put it to work.
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New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.