Beware divesting core business
A rare example of clear and useful academic research from Emilie Feldman at Harvard [but treat it with care - see below]. Emilie “investigates “legacy” divestitures, the sale or spinoff of a company’s historical core business. Firms appear to divest their legacy businesses within the context of larger efforts to reshape their identities. I find that operating performance deteriorates Read more
Analysts press for underinvestment
I have noted before that stock analysts need know little about how strategy affects firm performance, so an academic study on the impact of stock analysts on firms’ investment behaviour is intriguing. Read more
New book-opening
Just updated the revised opening for chapter 1 of Strategic Management Dynamics, which you can download from www.strategydynamics.com/smd-new-start. This includes an important correction to the explanation of free cash-flow on p.27 that was unfortunately introduced when the document was laid out – apologies.
Reminder – This document reviews through some well-known cases the current philosophy and some basic tools of business strategy to make the case for a continuous, holistic approach to strategic management, i.e. strategy dynamics.
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