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Purposive Strategy or Serendipity? Development and Diversification in Three Consumer Product Companies, 1918-39: J. & J. Colman, Reckitt & Sons, and Lever Bros./Unilever

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  • Roy Church
  • Christine Clark

Abstract

Combining the neo-classical model of imperfect competition approximating to the markets in which the three firms competed with the resource-oriented and agency concepts of Edith Penrose, this essay describes, analyses and compares the evolution of the product development policies of three leading British consumer goods companies between the world wars. Historical profiles of the size, structural, and organisational features, and of the managerial resources within each firm are compared, as is the process by which searches were instituted through committees charged with the task of product diversification and development. An assessment of the progress, outcomes, and relative success of such policies reveals the contingent nature of the process. The conclusion that serendipity as well as rational purposive strategy contributed to the patterns of product diversification offers a novel interpretation of one vital but neglected dimension of the business process.

Suggested Citation

  • Roy Church & Christine Clark, 2003. "Purposive Strategy or Serendipity? Development and Diversification in Three Consumer Product Companies, 1918-39: J. & J. Colman, Reckitt & Sons, and Lever Bros./Unilever," Business History, Taylor & Francis Journals, vol. 45(1), pages 23-59.
    • Handle: RePEc:taf:bushst:v:45:y:2003:i:1:p:23-59
    DOI: 10.1080/713999294
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    Cited by:

    1. Michael Heller, 2008. "Corporate Brand Building at Shell-Mex Ltd in the Interwar Period," Working Papers 23, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Stefan Schwarzkopf, 2008. "Turning Trade Marks into Brands: how Advertising Agencies Created Brands in the Global Market Place, 1900-1930," Working Papers 18, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    3. De Rosa, Marcello & McElwee, Gerard & Smith, Robert, 2019. "Farm diversification strategies in response to rural policy: a case from rural Italy," Land Use Policy, Elsevier, vol. 81(C), pages 291-301.

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