Content deleted Content added
Restored revision 1107428163 by BrownHairedGirl (talk) |
→Origins in corporate strategy: Add years to Scott reference |
||
Line 31:
The term operating model has been used in corporate strategy to mean what Lynch, et al., of ''[[corporate strategy]]'' describe as: "the relationships among the businesses in the corporation's portfolio and the process by which investments will be determined among them."<ref>Richard Lynch, John Diezemann and James Dowling, The Capable Company: Building the capabilities that make strategy work (Wiley-Blackwell, 2003)</ref><!-- as written, the similarity is not apparent. if strategy is about investment, it isn't about operations. Just sayin'.-->
Corporate strategy grew out of the research of [[Harvard Business School]] professor Bruce R. Scott who developed a model of the stages of corporate development.<ref>Bruce R. Scott, "Stages of Corporate Development (Part I)" (Harvard Business School Note 371-294) (1970, 1977)</ref> He traced the evolution of a firm from "Stage I" with a single product (or line of products) to "Stage 3" with multiple [[line of business|lines of business]], markets and channels. Following this work, [[Leonard Wrigley]]<ref>Leonard Wrigley, Divisional Autonomy and Diversification (Thesis for Doctor of Business Administration, Harvard University, 1970)</ref> and Richard Rumelt<ref>Richard P. Rumelt, Strategy, Structure, and Economic Performance, (Harvard Business School, Boston, 1974, Revised edition published by the Harvard Business School Press, 1986)</ref> developed ways of classifying company structures and comparing their strategies. They identified four different operating models:<ref>Kenneth R. Andrews, The Concept of Corporate Strategy (Irwin, 1986)</ref>
# Single line of business firms, where most revenue comes from a single activity;
# Related businesses where diversification is achieved by adding businesses that complement the original activity;
| |||