Chapter Two Some History: From Boston Box to Three Logics that Drive Corporate Action

Corporate-level strategy seeks to answer two questions: How is a portfolio of businesses assembled, and how are these businesses managed for maximum performance? Over the last 50 years, there appear to have been four broad schools of thought. In this chapter we review these four schools, showing how they provide the foundations for the three logics, presented in Chapter 1.

The “professional management” school proposes that it makes sense to have multiple businesses in one company when the leaders of the company have superior professional management skills. These managers know the latest techniques of good business management, like planning, performance ...

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