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Making Cluster Strategies Work

John M. Stengrevics (Assistant Professor of Management Policy, Boston University)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 1 March 1984

491

Abstract

In the Summer 1983 issue of this journal, Heany and Weiss introduced “cluster strategy” into the lexicon of strategic planning. They argued that in diversified corporations, additional leverage can be gained by integrating the strategies of a number of related strategic business units (SBUs), thereby giving rise to a cluster strategy. They proposed seven bases for formulating clusters (quest for efficiency, market relatedness, shared production processes, underlying technology, market systems relationships, distribution system, company specific) and also touched upon an administrative problem involved in establishing business clusters. That is, only CEOs have sufficient clout to translate perceived strategic relationships among SBUs into a unified strategy based on inter‐SBU cooperation.

Citation

Stengrevics, J.M. (1984), "Making Cluster Strategies Work", Journal of Business Strategy, Vol. 5 No. 2, pp. 106-111. https://doi.org/10.1108/eb039068

Publisher

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MCB UP Ltd

Copyright © 1984, MCB UP Limited

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