Discusses how recent changes in the European defence market have forced leading defence companies to make significant changes to their corporate strategy. Examines these changes, reviews the existing literature on strategic change in the defence sector and provides a detailed case study of British Aerospace. Shows that the process of strategy formulation is complex and changing. Moreover, makes it clear that the defence market is restructuring at a European and international level and that the process of managerial collaboration is intensifying. Says that the future of the defence industry and the strategic focus of defence firms is thus unlikely to remain in the hands of national governments but will be determined at a European or global level.
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