Corporate planning in the Netherlands

This article is the result of an investigation into the practice of corporate planning in 20 major Dutch companies. The results emphazise some of the problems regarding the corporate planner and his role in the firm. Those problems are such that it is not unrealistic to speak of some sort of “identity crisis”.     

Planning for a new international economic order?

Many a familiar planning instrument seems buried in the hot desert of the Persian Gulf: extrapolations, forecasts and projections. The corporate planner is now highly environmentally oriented. If he has recovered from the energy crisis, is conversant with the food emergency, and resigned to persistent inflation—he is about to face a new and unfamiliar phenomenon. It is ambitiously called “the new international economic order” (for the sake of brevity: NIEO).     

Corporate planning in local government: Some measurement problems

A corporate planning system makes measurement demands on an organisation which it may not have met before. This paper describes these in the context of corporate planning in local government, and discusses some typical examples, especially as far as needs for services and the effects of providing them are concerned. It also deals with the extent to which choices can be measured, and with the constraints that a real-time decision system puts on the planner.     

Strategic planning in Tanzania

The Tanzania Wood Industry Corporation is one of the very few parastatal organizations that have developed and introduced a strategic corporate planning process. The novelty of the idea, the many operational problems that surround the managers and the lack of adequate training are some of the problems that have retarded the development and introduction of corporate planning in Tanzania. In 1980 the new CEO of TWICO contracted a Finnish management consulting firm to audit the whole corporation and to recommend a better management practice. Systems manuals were then developed and a grassroots based strategic corporate planning process was then introduced. Now in its third year, the impact on management is very encouraging.     

Decision support for multi-family aggregate production planning

Aggregate production planning decisions are inter mediate range decisions that can have a significant impact on both productivity and profitability. In this paper, we examine an interactive computer-based method that provides decision support for the aggregate planner. The proposed approach combines the judgement of the planner with the optimization of subproblems to arrive at an effective solution for multi-family aggregate production planning problems. In the interactive approach, the planner exercises direct control over sensitive workforce levels and production capacities. A network flow sub-problem solver is used to generate optimal production plans and inventory levels given the user-specified production capacities. Decision aids are provided to help the planner achieve a cost-effective solution that is consistent with judgement concerning workforce levels. Computational testing on five test problems indicates that very cost-effective solutions can be obtained. The results of applying the interactive method to a real-world problem are also reported.     

Strategies for planning

In recent years there has been a good deal of discussion amongst planning specialists and academics about the gap which exists between the theory of planning as set out in journals and textbooks, and the practice of planning in private and public organizations. Planners are continually complaining about the resistance to planning by top management and operating managers in divisions and departments.In this article the author aims to produce a reconciliation between theory and practice and to discuss what alternative strategies are open to planners in devising planning systems for their organizations.He suggests that the problem has its origin in the fact that corporate planning theory was first developed by management scientists as a total systems approach. Corporate planners have failed to sell an integrated planning system either as programme budgeting or as corporate planning. Research suggests that a management team can only adopt and implement a comprehensive planning system in very special circumstances, e.g. when the organization's survival is threatened, a new management team has been appointed and the staff of the organization are ready to accept radical change.In normal circumstances the planner is wrong to advocate a ‘root and branch’ solution. He must diagnose the planning needs of the organization and his objective must be not merely to establish a particular planning procedure but rather to discover how he can best improve the quality of management decisions.Recent studies on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to the problem of improving the quality of management decisions.The paper reviews various approaches to planning and considers how they relate to organizations with different strategic problems, with differing organization structures and various management styles.     

Monitoring long-range plans

Are long-range plans monitored? How accurate is corporate long-range planning? These are important questions for both the long-range planner and top management. The results of a recent survey of U.S. utility firms by the author provides some insights into a number of facets of the monitoring phase of long-range planning.     

What kind of corporate planner do you need?

The planning literature ignores distinctions among types of plans and types of planners. Consequently, a systematic pairing of planners and a company's level of planning need is not well understood or implemented in practice. This paper provides two missing links in order to bridge this shortfall between theory and practice. One is a planning matrix which establishes six possible planning modes for a company based on its stage of development and management style. The second is a distinction between three types of planners who would be appropriate to each planning mode. The matrix plus the three categories of planners provides a new tool for management in its responsibility for planning the job of the corporate planner. In doing so, it also surfaces some underlying causes of organizational strain and stress associated with the corporate planner's position.     

The organisation and practice of corporate planning in the U.K.: Some recent survey results

This article reports some relevant results from a recent survey of the corporate planning practices of a number of leading British organizations. The sample spanned turnovers from £2000m. Within this range, the functional areas involved show considerable variation: for example, 95% of companies perform financial planning, but only 52% production planning. Organization too, quite naturally, displays great variety: thus one company operates with only a single planner whereas another employs thirty. Ratings are quoted for the main advantages and disadvantages of corporate planning as assessed by the chief executives; in general, the benefits dominate.     

Pricing policies and corporate strategy

In this article, attention is drawn to the importance of pricing in the formulation of corporate strategies. The author compares traditional “cost plus” pricing with market oriented approaches, and argues the case for pricing policies to be given greater emphasis in corporate planning. He examines the role of the corporate planner in developing price strategies for existing products and for new products and recommends the formulation of product strategies based on greater price leverage.     

企业战略的形成方式与战略规划部门的职能定位

本文从五个不同的角度,对企业战略的形成方式进行了划分,充分说明了战略形成方式的复杂性和多样性;对董事会、高层管理人员、战略规划人员、中层管理人员、具有创新精神的一线人员等,在战略形成过程中能够做出的贡献进行了分析;对企业战略规划部门的职能进行了定位,认为战略规划部门的主要责任不是制定战略,而是为战略制定工作提供一个平台,更好地发挥战略决策者和其他人的作用。     

Integrating MRP and finite capacity planning

Traditional production control systems based on the manufacturing resource planning concept do not sufficiently support the planner in solving capacity problems, ignore capacity constraints and assume that lead times are fixed. This leads to problems on the shop floor, that cannot be resolved in the short term. This paper focuses on solving these capacity problems by improving capacity planning at the material requirements planning MRP level through integration of MRP and finite capacity planning. This results in a planning method for simultaneous capacity and material planning. The planning method is based on a new and more accurate primary process model, giving the planning algorithm more flexibility in solving capacity problems. The algorithm is based on advanced scheduling techniques and uses aggregated information, thus combining speed and accuracy. The algorithm is designed to use the available flexibility: alternative routeings, safety stock, and replanning of production orders and requirements. This paper also discusses such related issues as robustness, memory and the role of the human planner.     

Developing a company's strategic management capability

Companies vary widely in their strategic management capabilities. Some still rely almost entirely on ‘fire-fighting’. Many others are slowly developing their capabilities but there are only a few which do give due attention to strategic issues and implement their decisions effectively. To be effective a corporate planner must assist this process of development of strategic ability and must adapt his role as the company's capability changes. In the most successful corporate planning units it is clear that this change in role is occuring, but is there not also a largely untapped market for consultants to assist companies in developing these capabilities?     

Some statistical aspects of manpower planning in the civil service

A special feature of modern manpower planning methods is the use of computer-based statistical models, and the Civil Service Department is taking the lead in their development and use for manpower planning in the non-industrial Civil Service. Account is being taken of related data requirements in the development of a new Personnel Record Information System which will replace a range of existing records.Development work in hand covers both the “demand” and “supply” aspects of manpower planning and a bank of generalized “supply” models is in operation. Stationary population, renewal and Markovian principles are involved, and the particular statistical problems of modelling small manpower groups are being met in the development of a “small group” simulation model.     

Long range planning in large United States banks

This study indicated that there is considerable interest in formal strategic long range corporate planning among large U.S. banks. Officers in a total of 97 large U.S. banks provided information on their bank's efforts in the area of long range planning for this study. The data indicated that the percentage of large U.S. banks with fully developed and operational long range planning systems is rapidly increasing. Information on the organization for long range bank planning and the administrative procedures being utilized are presented and discussed. In addition, information on problems that the bankers are experiencing in implementing and operating their long range planning systems are presented.     

Conceptual overview and applications of international marketing positioning

The author explores differing meanings of the term and concept of “positioning” in marketing. He concludes there are two different types of “positions” - market and product - and two different territories in which the positions are being observed or measured: the market place and the consumer's mind. These distinctions are helpful in the process of planning a marketing strategy.Michael Perry then applies this “position” idea in marketing to a real case of marketing oranges in four European countries. The results demonstrate how the concepts of “market position” can be measured and used in planning marketing programmes.     

Strategic planning—Which style do you need?

Strategic planning is now a large and diverse activity practised in many different kinds of organizations. This article provides an overview of the field with a summary of the five main schools of thought each with its own business philosophy and a range of practical approaches and techniques. These basic styles are concerned with planning as a central control system, a framework for innovation, an organizational change process, a political activity, and a way of exploring the future. Most planning systems have a dominant style or focus and this emphasis needs to be adjusted in response to changes which are occurring continually in the organization and in the external environment. The article is designed to help the senior manager or corporate planner to assess the state of planning in his organization and to see where there are important gaps in the enterprise's capability for planning which might be filled by the launching of new initiatives. The article also offers an agenda of approaches for consideration by the executive who wishes to move his enterprise from a conventional 5-year planning and budgeting system towards a more comprehensive process of managing organizational change and development.     

Effects of data breaches from user-generated content: A corporate reputation analysis

A threat for a growing number of firms in various industries is the occurrence of different breaches of sensitive corporate data. These critical events represent vulnerability for firms' corporate reputations, whose multiple dimensions are affected by customers negative perceptions in various ways. Further, in the Industry 4.0 era, the redundancy of scandals on social media can exacerbate negative effects. This paper reports an investigation into the effects of data breaches on corporate reputation dimensions. In this context, the study conducted latent Dirichlet allocation analysis on social media user-generated content (UGC) for a sample of 35 firms in nine industries that suffered a data breach incident between 2013 and 2016. Incidents have been categorized into three categories: “intentional and internal,” “unintentional and internal,” and “intentional and external” data breaches. The aim of the study was to discover how reputational dimensions changed after these critical events and to identify the differences among the types of data breaches.Results reveal that after critical events, more reputational dimensions appear to be relevant. While before critical events, users typically discuss the “perceived quality” of a firm's offer, after all three types of data breaches, users also pay attention to “customer orientation” and “corporate performance” dimensions. Another key reputation dimension, especially after intentional and internal data breaches, is the “firm as employer,” particularly in the context of a lack of investment in training regarding these events.These findings provide key insights for academics and practitioners to understand large-scale data breaches effects and reputational drawbacks after such incidents.     

Stakeholder Theory: The State of the Art

Abstract

For the last 30 years a growing number of scholars and practitioners have been experimenting with concepts and models that facilitate our understanding of the complexities of today’s business challenges. Among these, “stakeholder theory” or “stakeholder thinking” has emerged as a new narrative to understand and remedy three interconnected business problems—the problem of understanding how value is created and traded, the problem of connecting ethics and capitalism, and the problem of helping managers think about management such that the first two problems are addressed. In this article, we review the major uses and adaptations of stakeholder theory across a broad array of disciplines such as business ethics, corporate strategy, finance, accounting, management, and marketing. We also evaluate and suggest future directions in which research on stakeholder theory can continue to provide useful insights into the practice of sustainable and ethical value creation.     

MANUFACTURING STRATEGY ON THE “S” CURVE

The concept and techniques of “manufacturing strategy” offer managers the opportunity to use their production function as a strategic weapon in competition, an apparently attractive objective. Yet after about 25 years, the use of manufacturing in corporate strategy (MCS) as a management practice is not widespread. In contrast, however, in academic literature it appears to be flourishing and rapidly growing in popularity. This paper seeks to answer this apparent paradox, beginning with the history of MCS as it was developed as a theory of design to enable a manufacturing system to be focused on a key competitive task. Common criticisms of MCS, such as “tradeoffs,” “focus” and “undynamic,” are examined and refuted as valid reasons for its only modest usage. Instead, three “new” problems in the MCS concept and its techniques are suggested as genuine needs for the completion of the theory and for its becoming more universally understood and used by industrial managers.