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THE ECONOMIC IMPORT OF EUROPE 1992

THE ECONOMIC IMPORT OF EUROPE 1992 Footnotes 1 . This section is based on Joel A. Bleeke, “Strategic Choices for Newly Opened Markets,” Harvard Business Review , September‐October 1990, 158–165. 2 . The trade‐off is that companies with excess financial resources are insulated from the discipline exerted by the capital markets. However, the weakening of managerial incentives that tends to come with financial “slack” is primarily a problem when a company generates substantial amounts of free cash flow. A firm in a deregulating industry facing falling profits and a high degree of uncertainty is unlikely to have much money to squander. 3 . These challenges are described by John F. Magee in “1992: Moves Americans Must Make,” Harvard Business Review , May‐June 1989. 4 . Michael E. Porter, The Competitive Advantage of Nations (Free Press: New York), 1990. See also his article on Europe 1992 titled “Don't Collaborate, Compete,” The Economist , June 9, 1990, 17–19. 5 . This example appears in Gary Hamel and C.K. Prahalad, “Strategic Intent,” Harvard Business Review , May‐June 1989, 63–76. 6 . This distinction is emphasized by Hamel and Prahalad, cited in note 5. 7 . The notion of undercutting competitors in their home market is explored in http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Corporate Finance Wiley

THE ECONOMIC IMPORT OF EUROPE 1992

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Publisher
Wiley
Copyright
Copyright © 1991 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1078-1196
eISSN
1745-6622
DOI
10.1111/j.1745-6622.1991.tb00561.x
Publisher site
See Article on Publisher Site

Abstract

Footnotes 1 . This section is based on Joel A. Bleeke, “Strategic Choices for Newly Opened Markets,” Harvard Business Review , September‐October 1990, 158–165. 2 . The trade‐off is that companies with excess financial resources are insulated from the discipline exerted by the capital markets. However, the weakening of managerial incentives that tends to come with financial “slack” is primarily a problem when a company generates substantial amounts of free cash flow. A firm in a deregulating industry facing falling profits and a high degree of uncertainty is unlikely to have much money to squander. 3 . These challenges are described by John F. Magee in “1992: Moves Americans Must Make,” Harvard Business Review , May‐June 1989. 4 . Michael E. Porter, The Competitive Advantage of Nations (Free Press: New York), 1990. See also his article on Europe 1992 titled “Don't Collaborate, Compete,” The Economist , June 9, 1990, 17–19. 5 . This example appears in Gary Hamel and C.K. Prahalad, “Strategic Intent,” Harvard Business Review , May‐June 1989, 63–76. 6 . This distinction is emphasized by Hamel and Prahalad, cited in note 5. 7 . The notion of undercutting competitors in their home market is explored in

Journal

Journal of Applied Corporate FinanceWiley

Published: Jan 1, 1991

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