Knowledge that Transforms

This study tested the theory that the characteristics of British chief executives would be different from that of the subordinate top management team from which they emanated. The study focused upon variations in experiences over three sets of variables: corporate influences; e.g. tenure, mobility, functional experience, international exposure; domestic influences; e.g. education, family influence; and their self‐concept; e.g. aspiration levels, executive success traits. Substantial differences emerged between the two groups across all sets of variables, particularly within the corporate category.

This study examines the impact of diversification strategy on risk and return in diversified firms. Following an assessment of previous research on strategic risk, relationships between risk, return, and diversification strategy are hypothesized. Regression analysis shows that differences in risk‐return performance among diversified firms are more closely associated with structural factors associated with markets and businesses than with the particular diversification strategy chosen. Returns also influence the choice of diversification strategles which, in turn, do not get rewarded with higher profits. A curvilinear risk‐return relationship is also observed which is consistent with previous theoretical suggestions. Implications for the strategic management of risk are then drawn.

Over the past 4 years research teams from INSEAD (Fontainebleau), Boston University and Waseda University (Tokyo) have administered a yearly survey on the manufacturing strategy of the large manufacturers of the three industrialized regions of the world. In this paper the results for the 1986 survey are compared. One of the most striking results of that year's survey is the emphasis some of the more advanced manufacturers put on their efforts to overcome the trade‐off between flexibility and cost efficiency. In particular for the Japanese respondents these attempts become clear. Europeans and North Americans are not yet seizing the opportunity to cut costs through rapid production and design changes, and are focusing more on traditional cost reduction programmes and the improvement of quality. This might mean that they are preparing the basis on which they can built to obtain added value from flexible automation. If this is the case then the Japanese are clearly ahead.