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Article: Business unit manager influence on corporate-level strategy formulation.
- Article from:
- Journal of Managerial Issues
- Article date:
- June 22, 2005
- Author:
CopyrightCOPYRIGHT 2005 Pittsburg State University - Department of Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The distinction between corporate-and business-level strategy is a distinction as old, and as durable, as the field of strategic management itself (Bowman and Helfat, 2001; Hofer and Schendel, 1978). This distinction between levels of strategy is reflected in the multidivisional (M-form) structure of multibusiness corporations. The M-form, according to Chandler (1962), allows the Chief Executive Officer (CEO) and the "corporate office" to set corporate strategy, while delegating more detailed matters to the managers of business-specific subunits. It might thus appear that, although these business unit managers may be formulators of business strategy, they are implementers ...