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Management article
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Reference no. SMR2841
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 1987
Length: 13 pages

Abstract

International businesses faced new strategic challenges in the 1980s. Corporations that had once succeeded with relatively one-dimensional strategies - efficiency, responsiveness, or ability to exploit learning - were forced to broaden their outlook. Successful ''transnational'' corporations integrated all three of those characteristics. They did so by building on the strengths - but accepting the limitations - of their administrative heritages. This is the first of two articles; the second will describe how actual companies made that transition.

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Abstract

International businesses faced new strategic challenges in the 1980s. Corporations that had once succeeded with relatively one-dimensional strategies - efficiency, responsiveness, or ability to exploit learning - were forced to broaden their outlook. Successful ''transnational'' corporations integrated all three of those characteristics. They did so by building on the strengths - but accepting the limitations - of their administrative heritages. This is the first of two articles; the second will describe how actual companies made that transition.

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