This paper investigates the effect of those environmental factors on the business structures and strategy of big corporate entities. Further, it examines the strategic tactics available to business entities in the process of corporate planning and policy making and also focuses attention on the strategic importance of the changes that are taking place against the now in vogue phrases like big can be beautiful.The Economist magazine on the 27th of August 2009 carried a lead article eulogizing the hitherto undiscovered merits of corporate giants that were defensive during the past decades and now are staging a comeback because they have a set of advantages associated with their size and the subsequent competitive strategy to survive in a much more competitive environment (www.economist.com). These environmental factors invariably play a very significant role in the corporate structure, strategy and, the policy-making environment of the big companies. While modern management theory basically emphasizes the importance of creating manageable structures within the organization, the empirical evidence suggests that complex and big organizational structures are able to withstand the competitive pressures much better than hitherto thought of.The modern corporate entity according to Pearce and Robinson is more focused on developing competitive advantage against rivals and therefore some principal external environmental factors such as those related to the external operational environment of the business organization (Pearce and Robinson, 2002). Though these environmental factors are nothing new in comparison to the PESTLE – political, economic, social, technological, legal and environmental – the authors have successfully suggested a theoretical basis for those significant environmental factors so that the business organization functions in conformance with predefined corporate goals.
Big Is Back The Return of Corporate Giants