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Prior work has shown an association between diversification strategy and profitability. This paper replicates that association using more recent and … - Richard P. Rumelt
" "Prior work has shown an association between diversification strategy and profitability. This paper replicates that association using more recent and complete data and goes on to investigate the sources of the association. Theoretical arguments are advanced which predict the association which will remain once the effects of varying industry profitability are removed. Empirical tests verify this prediction and permit the discrimination between the effects of industry and diversification strategy on profitability.
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About Richard P. Rumelt
Richard Post Rumelt (born November 10, 1942) is an American organizational theorist, and Emeritus Professor at the , known for his work in the field of strategy, strategic planning, strategic management, and strategy dynamics.
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Richard Post Rumelt
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Richard Rumelt
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Additional quotes by Richard P. Rumelt
Some of the biggest changes have been in the process of generating business strategies—what I call “strategy work.” Around 1980, the received wisdom was to decentralize into business units, which would each generate a strategic plan. These plans were then amalgamated up the hierarchy, in some portfolio way, for senior management. That approach has all but disappeared, and we’ve seen a dramatic recentralization of strategy work.
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