George Stalk, Jr., Philip Evans, Lawrence E. Shulman
Competing on capabilities provides a way for companies to gain the benefits of both focus and diversification. Put another way, a company that focuses on its strategic capabilities can compete in a remarkable diversity of regions, products, and businesses and do it far more coherently than the typical conglomerate can. Such a company is a “capabilities predator”—able to come out of nowhere and move rapidly … [ Read more ]
Content: Quotation | Authors: George Stalk Jr., Lawrence Shulman, Philip Evans | Source: Harvard Business Review | Subjects: Management, Strategy
Capitalizing on Anomalies
Sometimes the best opportunities lie hidden in something that, at first glance, makes no sense. Idiosyncratic customer preferences or employee behavior can lead to aberrations in business results. How do you deal with these anomalies?
One common response is to ignore them. Most organizations try to contain or suppress anomalies, for fear they will draw attention to departures from standard operating practice. When senior managers learn … [ Read more ]
Content: Article | Author: Lawrence Shulman | Source: Boston Consulting Group (BCG) | Subject: Management
Management Lessons of Premium Conglomerates
Much of the debate about the value of highly diversified companies, or conglomerates, centers on theoretical views of diversification, risk, and investor portfolio profiles. In an effort to examine the issue of conglomerate performance in a more pragmatic and action-oriented way, The Boston Consulting Group studied the market performance of conglomerates during the 10-year period from 1988 to 1997.
Content: Article | Author: Lawrence Shulman | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management