About
Publication Information
Subscriptions
Permissions
Advertising
Journal Rankings
Best Article Award
Press Releases
Resources
Access Options
Submission Guidelines
Reviewer Guidelines
Sample Articles
Paper Calls
Contact Us
Submit & Review
Browse
Current Issue
All Issues
Featured
Latest
Topics
Videos
Cases
Subscribe
California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
Search
Article Information
Competition, Strategy, and Business Performance
McGahan, Anita M.
41
/
3
(
Spring
1999
):
74
-
101
What drove business profitability during the 1980s and early 1990s? Management consultants, business academics, investment analysts, and the business press have all offered managers a range of theories. However, managers have not had access to much data about aggregate trends and broad influences on business profitability over time. With new reporting requirements in place in the United States around 1980, the problem was partly solved. This article uses the new data to categorize the performance of U.S. businesses over the past two decades. The study begins by grouping businesses based on the trajectory in their accounting profitability. If offers information on the average size, growth, financial-market premium, and sectoral affiliation of businesses within each of the groups. Finally, this article describes the broad strategic issues that arise for a subset of the businesses within each group. The result is a series of suggestions about shifts in the strategic issues that face businesses across the economy.
