fc’ used in strength design is uniaxial strength of concrete. Compressive tests on concrete specimens (cylinder or prism) with L/D=>2.0 (length to diameter) closely resemble uniaxial condition in the central part.
Due to multiaxial stress conditions (i.e. lateral restraint at the top and bottom platens), compressive strength of standard cube specimens (150mmx150mmx150mm) will generally be higher (1.4 to 1.1 times) than standard cylinder specimens (150mm dia x 300mm height).
Depending on the maximum size of aggregate (1/3 diameter of mould), smaller size cylinders (100mm dia x 200mm height) are allowed for testing in various standards. Compressive strength of specimens smaller than standard size will generally be higher. For 100mmx200mm size cylinder no correction is required due to small variation in strength (4%). This variation can be reduced by moulding 100mm diameter cylinder in two layer.
If L/D ratio of the tested cylindrical specimens is other than 2 then correction factor will be required. Cylindrical specimens with L/D ratio less than 2 will show higher compressive strength. Therefore, the correction factor will be smaller than 1.
In-situ strength are generally lesser than laboratory cylinder strength due to various reasons such as size, loading rate, curing method etc. In-situ strength is generally taken as 0.9fc’.
In the design strength of 0.85fc’ the factor of 0.85 includes difference in insitu and cylinder strengths and the ratio to convert stress distribution to rectangular Whitney block.
In BS 8110 standard, design strength is taken a 0.67fcu. The factor of 0.67 includes difference in insitu and cube strengths, difference in cylinder and cube strengths and the ratio to convert stress distribution to rectangular block.
For details on compressive strength testing you can refer to ASTM STP 169D : Significance of tests and properties of concrete and concrete-making materials.