Corporate strategy is concerned with decisions about the types of businesses to operate in, including what businesses to acquire or divest, and how best to structure and finance the company (Johnson & Scholes, 1889, p. 9). It is concerned with the way resources are focused to convert distinct competences into competitive advantage (Andrews, 1980, pp. 18-19). Johnson (1987, pp 4-5) stated that strategic decisions occur at many levels of managerial
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Classical Organizational Theory The purpose of this paper is to explore the Classical Organizational Theory by defining, listing contributors to the development, and presenting the applications of the theory in business management. Developed in the early 1900s to 1930, its emphasis is on the concepts of formal structure and technology. Organizations of that time were struggling to address issues of industrial management, including efficiency, specialization, quality, cost management, and managerial roles. The people working within were valued for their instrumental abilities and contributions. Organizations were designed as if they were machines (Morgan, 1980).
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