September 2021
Intermediate to advanced
414 pages
11h 3m
English
Content preview from The Financial Times Guide to Strategy, 5th Edition
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CHAPTER 1
THE JOY OF CORPORATE STRATEGY
Economists, who are meant to provide an accurate and insightful account of how the economy works, can do no such thing, because they lack a coherent ‘theory of the firm’, of how corporations work, of Corporate Strategy. Most economists would prefer to ignore firms altogether, and show no curiosity about how they work. Economists are happiest describing markets, without the need to describe how those supplying markets are organised. If they do deign to describe firms, economists mainly assume that all firms are similar and that it is impossible for a firm, except when the market is not working properly (under monopoly or oligopoly), to earn a profit over and above the normal cost of capital.
Yet the joy ...
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