Strategic planning in small and medium-sized companies

In analysing the characteristics of strategic planning applications in different types and sizes of companies, confusion often arises not because of the application but because of the definitions utilized. This paper analyses the use of strategic planning concepts in small and medium-sized companies in Holland. As the author points out, in this context the definition of small and medium-sized is determined by five strategically relevant criteria which are distinctive. The author points out, however, that whilst these criteria are distinctive of the category of small and medium-sized companies surveyed, they do not all have to occur at the same time; the higher the number that do occur, the more typical the company. Whilst this paper does not, as the author admits, represent the result of a systematic survey, the authors wide experience as a consultant is in itself a valuable background to his analysis. Indeed, the findings stated in this paper represent an analysis of the strategic planning practises of some 75–100 companies. Therefore, in view of the detailed criteria utilized and the number of companies analysed the results represent an important addition to our knowledge of the application of strategic planning.     

Strategic planning in smaller rapid growth companies

The research reported in this article is based on a study of the strategic planning practices of the 500 fastest growing privately held smaller companies in the United States ranked according to percentage of sales increases from 1978 to 1982.^p1 Based on the information provided, a clear picture emerges regarding the actual role of strategic planning in rapid growth companies.     

Patent portfolios for strategic R&D planning

Empirical research has found a discrepancy between the perceived importance and the actual level of information on competitor's R&D strategies. It has been argued in the literature that patent information might be used to overcome this information deficit. However, empirical research further reveals that patent information is rarely used in strategic R&D planning. The present paper explores this issue and introduces two types of patent portfolios for strategic R&D planning. In patent portfolios on the company level, patenting strategies are identified and the quality of overall technological positions is benchmarked against relevant competitors. In addition, we present a patent portfolio on the technological level, which, as it is known from various technology portfolios, helps companies to manage the allocation of R&D resources effectively. Based on patent data from 21 German, European and Japanese mechanical engineering companies we show the application of both patent portfolios for strategic R&D planning purposes. The patent portfolios prove to be a very valuable tool for R&D decision makers in companies. Based on the experiences made in the case study, recommendation for the effective use of patent portfolios are formulated.     

The components of strategic planning

What is the current level of strategic planning in the United States? What objectives are quantified in the strategic plans? What kinds of environmental factors are identified in the planning process? What areas are planned for? How often are the strategic plans reviewed? These are among the questions which were raised in a recent survey of 323 companies whose results are summarized in this paper. It is hoped that this study will permit practitioners to compare their planning with planning being performed in their industry.Suggested improvements in the stategic planning process include more frequent monitoring of performance against the plans, more comprehensive environmental surveillance, and greater emphasis on organizational structure plans. The strategic planning process was found to be constantly evolving and cyclical. The strategic planning activity expanded during adversity and contracted when business prospects were good.     

Strategic planning—A new arrival in Hungarian industry

This paper outlines the fairly recent history of strategic planning in Hungary, which is still by no means widespread. Strategic planning in business has to co-exist with the official national 1 and 5 year plans. At the present time some 30 percent of Hungarian industrial companies have some type of strategic planning practice, and the rest have some version of official planning. Those with good independent planning practices have proved more able to survive in a changing environment.     

Formal strategic planning in the United States today.

The author sets out an appraisal of the state of corporate-strategic planning in the United States. He deals with the chronology of planning development before appraising the 'state of the art'. The appraisal utilizes the author's own set of criteria which are comprehensive and provide a framework against which individuals and companies can assess their own systems. The author deals in some detail with the nature of planning systems in different types of organization and provides valuable insight into the current state of strategic planning and a useful framework for critical analysis.     

The state of private sector strategic planning in Canada

This paper examines Canadian strategic planning expertise from a number of different aspects. It evaluates the relative sophistication of Canadian and American management consultants and points out that the U.S. expertise is still particularly good and preferred. It is perhaps a pertinent comment that the view of many is that ‘The U.S. people have … defined their products in such a way as clients can use them’. Analysis of the stimuli for strategic planning is an appropriate focus, particularly since it concludes that it is rare that a visionary cheif executive is responsible! Most companies appear to pursue strategic planning through fear rather than enlightenment. The quality of input to the planning process varies widely, with extrapolation from the past a major preoccupation. There appears to be a lack of environmental analysis. The author analyses a number of important issues and concludes that a bolder embrace of strategic planning would serve Canadian management well in responding to the extensive challenge facing their country's economy in the next 10 years.     

An investigation of company product decision making

This article is concerned with an investigation of the approaches taken by companies in making product decisions. The first part is concerned with a review of the range of product decisions as presented within the literature. This range is established within the context of corporate planning, with a major split between long term strategic planning product decisions, and short term operational planning product decisions. The second part of the article is concerned with the results of a survey that was designed to investigate the criteria that companies use within their product decision making. These criteria included those applicable to strategic planning, but also incorporated a range of criteria applicable to short term operational planning, as proposed in a recent article by Greenley [8]. The overall conclusion to the survey results was that a common and universal approach to product decision making cannot be identified within this sample of companies. A low level of agreement as to the relative degree of importance of the criteria was evident, and, little attention to differentiating product decisions with time was also evident. The results also challenge the importance given by the literature to the concepts of product life cycle, portfolio analysis and synergy. Finally, the author suggests two implications as a consequence of these results.     

How companies keep abreast of technological change

This paper reports on a study of the incidence and organizational form of monitoring of the technological environment by U.K. companies. Four organizational structures are distinguished for companies undertaking the monitoring of the technological environment: dedicated central units; inclusion within a central group function; diffusion throughout the complany; and decentralizaton. The practice of monitoring the technological environment is found to be related to the absolute size of a company, its capital intensity, planning horizon, degree of diversification and the importance attributed to technological factors in the strategic planning of a company.     

Planning for changes in stages of corporate development

A considerable amount of research has demonstrated how companies evolve in terms of strategy and organizational design. The evolution of firms reflects the dynamic response of companies to their changing environment. It is logical that planning must also change in response to changes in overall corporate strategy. This dynamic aspect of planning requires a different approach than planning for the continuing growth of existing businesses based on a consistent strategic outlook. This difference is illustrated by reference to two components of planning: fixed and variable. These distinctions are used to demonstrate the dynamic aspect of planning and how planning can, and should, change to accomodate changes in management strategies.     

Sustainable planning strategies in supply chain systems: proposal and applications with a real case study in fashion

Abstract

Pollution generated by the fashion industry drives people to pay attention to fashion companies’ sustainability practice. This increase in attention has induced vast literature studying the related area. Since the fashion apparel supply chain is complicated which involves a lot of interrelated steps and decisions, how fashion companies can identify the demand in sustainable fashion and make the right decision in resource allocation throughout the supply chain becomes a critical issue. As a result, this paper examines how a fashion company can develop a successful sustainable planning strategy throughout the sustainable fashion supply chain. The sustainability attributes and the sustainable planning strategy mechanism are also discussed. Based on the institutional theory and resource-based theory, we first analyse the external pressure and internal motivations for companies to adopt a sustainable planning strategy in the fashion supply chain. We then identify the core stakeholders related to the sustainable planning strategy and propose how the decision-making theory can help develop the sustainable supply chain management mechanism. Next, we establish a sustainable planning strategy framework. Finally, via a case study with public data on the fashion giant brand Nike, we explore the application of our proposed sustainable planning strategy framework. The finding suggests that the strategic planning of fashion companies on sustainability can improve the performance of the stakeholders throughout the whole sustainable fashion supply chain.     

Strategic planning catches on in U.S. retailers

This article examines the strategic planning practices of large American retailers. Most retailers surveyed have engaged in strategic planning, almost one-third have hired employees whose main jobs are strategic planning and over two-thirds use outside consultants. Top management participation is also high, the scope of strategic planning is broad both internally and externally, and several standard strategic planning methods are used. Moreover, in spite of the rapid pace of change in retailing, over half of the retailers use long-range time frames. They recognize the value of strategic planning because almost three-quarters intend to increase their emphasis in this area.     

A framework for the strategic management of future tyre technology

Strategically managing technology faces one major problem: technology planners and managers who mistake ‘R & D management’ for ‘strategic technology management’. In globally competitive markets, survival and growth of tyre companies will increasingly depend upon the ability to manage technological resources strategically. This article proposes a process model which views the strategic management of technology as ‘techno-business management’, where technology and business strategy, planning and implementation can be facilitated by the use of portfolio frameworks and technology forecasting techniques in analysing and addressing the key strategic management areas of techno-business strategy development and strategy implementation.     

Prediction and practice in multinational strategic planning

The author of this article argues that the models which have been put forward relating to the strategic planning process in multinational companies are inadequate. Nevertheless that the organizational structures and control systems adopted by companies have allowed them to cope to some degree, the advent of the regional headquarters having played a significant role in this process where inter-regional trading is limited.The emergence of global strategies seems to be progressing at a substantial pace.     

The hazards of strategic planning for global markets

Global strategic marketing planning has emerged as a key process in managing today's worldwide marketplace. This survey of 90 large American global corporations reveals that most are bottom-up planners. US firms appear to have distinct cost and numbers orientations. Industry and competitive analyses are used in many companies, although managers appear to lack suitable frameworks for SWOT analyses. Economic climate changes tend to be most disruptive to global planning efforts. When faced with non-achievement of goals, most firms reformulate both objectives and strategies.     

Restructuring Among the World's Leading Oil Companies, 1980–92

Restructuring among the international oil majors during 1980–92 involved simultaneous, system-wide changes in strategies and structures dictated by the demands of a more competitive, unstable business environment, but triggered by declining profitability and motivated by the desire to increase shareholder returns. Restructuring involved transition from one strategy-structure configuration, the 'administrative planning model', to another, the 'market responsiveness model'. The multiple strategic and structural changes were linked by a unifying theme: the quest for efficiency in a turbulent environment. This quest presented the companies with a strategic dilemma - reconciling economies of scale and scope with the benefits of flexibility; and a structural dilemma - reconciling decentralization with coordination. This paper draws upon the experiences of the world's eight largest international oil majors.     

Corporate planning in medium-sized companies in the U.K.

The past decade has seen the publication of a considerable amount of research into the corporate planning practices of industrial giants. More recent work has investigated corporate planning practice in small businesses. However, little attention appears to have been paid to actual practice in medium-sized companies. This article reports the results of a study designed to investigate corporate planning practice in medium-sized companies in the U.K. The results show that while corporate planning is widespread among medium-sized companies, it is not the well-balanced and integrated system envisaged in the literature. Also, the majority of chief executives are not truly satisfied with corporate planning as practised in their organizations, but are, at the same time, largely unable to suggest changes to make corporate planning more effective. This points clearly to a need for action by researchers and consultants in the area.     

Identifying the business value of superior environmental performance: Current deliberations from the aspen institute

The growing connection between the environment and economic growth has created many challenges for business. In response, a set of recent dialogues, convened by the Aspen Institute, focused on the business opportunities inherent in environmental leadership. The conclusion? In a nutshell, businesses that integrate their environmental planning with their strategic business planning can improve their corporate performance and gain a competitive edge. Investors and analysts who understand these connections will be better positioned to identify companies with superior stock appreciation in the newly emerging sustainability-driven marketplace of the 21st century.     

Why don't U.S. boards get more involved in strategy?

About 5 years ago there was strong interest in the United States in increasing the role of the Board in corporate strategy development. In practice, these expectations were not met. The reasons include: lack of governmental and other pressures; the lack of conspicuous ‘success’ stories among major companies with active Board committees of this kind; and general reappraisals of the strategic planning process itself. There are continuing grounds for skepticism. Nevertheless, there are some reasons for optimism, including two surveys of Boards of Directors indicating that expectations continue to glow.