Critical decision areas in corporate financial policy

The argument in this paper rests on the assumption that the prime objective of any corporate activity must in some way be related to a profitability goal, however this may be measured, however this may be defined, and however this may be constrained by the relevance of a times-cale.

The paper makes some comments on the selection of a corporate objective or goal but mainly it considers the direct contribution that financial management can make to achievement of this goal. It distinguishes this from the accounting rôle which is more appropriately concerned with measuring and monitoring progress towards the goal.     

How planning and capital budgeting improve SME performance

This paper focuses on the use of strategic planning among small and medium sized enterprises (SMEs) in the UK manufacturing sector. It analyses the relationship between the intensity of strategic planning, business objectives, perceived performance, changes in the business environment and the use of capital budgeting techniques. Capital budgeting is of particular interest as an area of investigation, and is one which has seldom featured in previous studies of strategic planning behaviour. These issues were investigated via a survey of UK manufacturing SMEs carried out in the winter of 1996/97.

The key results suggest that SMEs incorporate a range of objectives into their strategic planning process, with profit improvement perceived to be the most important objective, followed by sales growth. SMEs engaged in detailed strategic planning are more likely to use formal capital budgeting techniques, including the net present value method, which is consistent with maximising the companys' value. Perceived profitability and success in achieving organisational objectives were positively associated with planning detail, suggesting that strategic planning is a key component improving performance. Planning detail was also associated with a significantly higher level of perceived change in the business environment.     

How Japanese partners help US manufacturers to raise productivity

Cross-border alliances are useful strategies for technological innovation and as a basis for the adaptation of foreign technologies. This study provides evidence that through strategic alliances US automotive firms are effectively adopting manufacturing technologies from Japan, and are adapting them to the US industrial context.

The results show that US firms without foreign affiliations use fewer modern manufacturing technologies than US firms with Japanese strategic alliance partners. Furthermore, US firms with Japanese strategic alliance partners believe that manufacturing cycle times for product introduction are more efficient that US firms without foreign affiliations.     

Economic analysis of public water supply in the Piscataqua river watershed

The southeastern portion of New Hampshire is experiencing a rapid growth in population. Many small semi-rural communities are becoming suburban complexes with mushrooming residential developments. These communities are, as a consequence, confronted with expanding demands for municipal services. The situation creates an urgent need for planning efforts that will aid decision makers in the choice among alternative systems for providing these municipal services.

The authors were aware of these needs and were interested in the economic problem involved. Little guidance is to be found in the literature, since most approaches are based on the technical engineering aspects of design and construction. It became apparent that little had been done to combine engineering design and economic evaluation in a comprehensive approach.

The intent of this paper was to analyze the water supply system problem from an economic viewpoint. The study reviews the characteristics of water supply systems and identifies the economic problems associated with them and is, then, primarily an exploratory study conducted on a theoretical basis. It is not a research study in the sense of conducting an analysis or analyses of empirical data.

This exploratory study will hopefully provide a basis for the conduct of future research and the development of some quantitative procedures that will be useful to planners and decision makers.     

Turning plans into action— A case study

This article focuses attention on the shorter term and on improving financial performance. The author puts forward familiar arguments that planning and action should be a continuous process involving line management and the major staff functions, the whole process directed by the Chief Executive.

The effectiveness of a Corporate Planning system is very much influenced by the extent to which it is seen to improve short term results and medium term potential for the business as a whole. The Corporate Plan should be conceived and used as a working document. The article illustrates how Simon Engineering set about meeting these criteria.     

Alternative plans for London Dockland: Not force but seduction

Built into the planning of much of dockland has been the belief that physical plans would stimulate adequate new machinery to implement them.

A review of some of these plans suggests that physical plans can sterilize new machinery, by pre-empting decisions which are seen to be integral to the purposes of that new institution.

This article suggests that the next round of dockland planning should concentrate on the organizational and political design to manage change in dockland.

The physical-economic plans can then become an accurate reflection of widely inclusive emplementation institutions.

If brought into being with political astuteness, new government development corporations have the possibility of capturing political constituencies presently omitted from the system. But persuasion and participation must be the major processes, not coercion or exclusion.     

Cutting back bureaucracy in a public service

The British public service is respected for its efficiency and objectivity. But it has a music hall reputation for bureaucracy and lack of initiative. As with many long-acquired reputations, nothing nowadays could be further from the truth. A revolution has swept through the corridors of Whitehall and the many other places throughout the UK where the public service is alive and well. This revolution has been described in Morley,¹ and other articles² have shown how strategic planning and management have been adopted by individual parts of the public sector. Having set the scene in ‘Building a New Organization for Nature Conservation’,² the author now describes how English Nature moved on to reflect its new strategic approach in a different organization structure which broke many of the traditional mores of the public sector.     

A strategic perspective for make or buy decisions

Make or buy decisions have typically been relegated to purchasing departments. While this is not totally unjustified, top management must consider the strategic implications. In essence, operative decisions are made here which influence the strategic thrust of the organization. Make or buy decisions have substantial strategic implications in the entire planning process. They can affect a firm's competitive advantage, and alter the types of alternatives considered in the planning process.

It is argued that strategic considerations should outweigh technical and conventional approaches to make or buy decisions. Top management needs to put these decisions back on their strategic agenda.     

How to integrate strategic planning into your management process

The primary purpose of strategic planning is to enable management to make decisions today which will affect the firm over the long run where the long run is characterized by risk and uncertainty. If strategic planning is to be useful to management it must be an integral part of the decision making process and not merely an appendage to the management process. In this paper we shall define some of the problems involved in integrating strategic planning and strategic planning tools into the decision process. We shall also suggest some possible solutions to these problems.     

Strategic planning for the board

Although the planning operation is regarded by some observers as unrealistic in conditions of rapid change and increasing competition, the discipline of strategic thinking and the need for strategic leadership continue to be of vital importance. The author examines the purpose of the Board of Directors and its role in the management of strategy.     

Technology management in Indian companies

Since 1966, the Indian Government has progressively restricted imports of technology. Together with constraints on the growth of big business houses and of foreign firms, the next consequence of the Government's policies has been that it takes 3–5 years for a large firm to get a sanction for the import of technology and its utilization; this entails advance planning of technology imports, and advance action for the generation of alternatives within the country, should the imports not be allowed.

The restrictions on technology imports accentuated the need for internal research and development; at the same time, the recession that began in 1966, and whose effects still continue to be felt in some sectors, squeezed industrial profits and limited the resources that could be allocated to R & D. Hence large Indian firms have felt the need for methods of rational allocation of R & D resources among competing projects, and a number of them have been feeling their way towards general criteria of allocation. Some of their efforts are described here. They are essentially exploratory; but since R & D management is still a problematic area even in industrial countries, an analysis of Indian practices is perhaps of more general interest.     

策略延迟下众筹项目的定价和激励决策

本文研究了投资者的策略延迟行为对众筹项目的定价以及激励决策的影响。策略延迟是指投资者在投资过程中自动按照估值在相应阶段投资,并且部分投资者会刻意延迟投资来搭便车的行为。本文采用了一个两阶段模型来刻画投资者的投资行为,并进一步对比序列到来模式（投资者没有策略延迟）与同时到来模式（投资者有策略延迟）中的贝叶斯均衡。研究结果表明,当发起人采用价格激励的方式提高成功率时,投资者的策略延迟行为可能会影响最优的激励策略。当存在固定目标约束时,如果投资者没有策略延迟行为,发起人应该激励前期投资者,通过弥补他们等待成本的方式提高成功率;反之如果投资者出现策略延迟行为,对项目估值较高的投资者会自动在前期投资并且愿意承受更高的价格,此时发起人应该反过来激励后期投资者。当不存在目标约束时,不论投资者是否有策略延迟行为,发起人都应该始终激励前期投资者以获得更高的成功率以及期望收益。     

Computerized corporate planning

Computerized Corporate Planning as defined in this study is: the use of the computer to simulate the effect of alternative strategies on achievement of corporate objectives; the capability of answering ‘What if?’ questions.

The increasing complexity of business firms operating in a rapidly changing environment has led many managers in recent years to consider the development of computerized corporate planning systems. This article is concerned with an in depth study of some 55 such installations in North America and Europe. The objective of this effort conducted during the period of June –November 1970, was to determine the state of the art, identify problems of installation, and project trends in the rapidly evolving use of computers in planning. Specific questions include:

What is the economic justification for these systems? How are they being used? Who is using them? Have results measured up to expectations? What are the costs? Are organizational problems incurred?     

Emotion in strategic management: A review and future research agenda

Emotion in strategic management has attracted increasing scholarly interest during the past twenty-five years. Researchers have demonstrated the nature and significance of emotion in strategic management from a broad range of perspectives across different levels of analysis. Given the expanding research on the topic, the time is ripe to synthesize this diverse and multifaceted body of knowledge. In a thematic synthesis of the literature, we address the following questions: how does emotion influence strategic management, and how can the field be further developed? We review emotion constructs used in the extant literature and identify three themes related to how emotions influence strategic management: the nonconscious influence of emotions, emotion regulation, and collective emotions. Based on these themes and our analysis, we propose three areas of future research to inspire the field to develop further: (1) scope conditions of emotion research in strategic management; (2) capturing emotion in strategic management; and (3) the ethics, power and politics of emotions in strategic management.     

Organizing for strategic management

In this paper, the author—a well-known Dutch academic and consultant—discusses the factors which make ‘strategic management’ effective. Among these, a dominant factor is the organization climate which, in its turn, is determined by the quality of the managers and the availability of alternatives. He suggests that to improve the organization climate in which strategic management can be effective, the quality of the managers is a crucial factor. The scope for alternatives is an important constraint. This article assesses common problems and failures in strategic management and gives some suggestions for organizing it, including the use of consultants and the role of formal procedures.     

U.K. chemicals—Strategic planning or industrial strategy

A distinction is drawn between chemical industry strategic planning and planning related to particular products, markets and investments.

For the past decade, the industry has collaborated closely with government and unions on industry and sector planning studies, mainly through the Chemicals EDC and its working parties. Recent government legislation and policy has sought to formalise the joint planning process through planning agreements and an industrial strategy, these being mainly concerned with specific investments and market developments. Problems inherent in this approach are discussed.

Some major strategic issues involving both government and industry are identified.     

Corporate planning using government information systems

Agencies of the U.S. Government collect large quantities of data some of which are useful for private firms (eg) in developing long-range plans. However a problem arises in that considerable time may elapse before the data is published. As a result it often becomes too old for companies to use if they are operating in dynamic markets.

The information system discussed in this paper (relating to the Fertilizer industry) bypasses this delay. It enables a private firm to have direct access to the files maintained by the National Fertilizer Development Centre of TVA.     

Managing strategic change in a mature business

The article draws on the experience of four sectors of the U.K. economy to suggest what the competetive conditions of the next decade might look like. The distinction is made between barries to entry and barries to success. Strategic management in the more successful companies appears to involve the common ability to sustain strategic flexibility. The majority of the piece indicates how this quality has been fashioned and how the process of its creation and maintenance has been managed in the companies concerned. Evidence from the four sectors is used to speculate on some of the key determinants of strategic flexibility in the 1990s.     

Planning Implications of the Information Systems Strategic Grid: An Empirical Investigation

In recent years, information systems (IS) planning has come to represent a key IS management tool to practitioners and researchers. Concurrently, there has been increasing recognition by organizations that their IS can be viewed as a strategic resource. This research is an attempt to explore the relationship between these two aspects of IS. It analyzes, in an empirical setting, the contingent nature of some IS planning-related variables in the context of the strategic relevance of an organization's IS. The basis for the empirical test is the IS strategic grid framework developed by Cash, McFarlan, McKenney, and Vitale [6]. A questionnaire survey method is employed to elicit information on the strategic orientation of IS and IS planning issues within respondent organizations. The difference in emphasis on various planning aspects in organizations with different IS environments is analyzed. Results of the analysis indicate that there is empirical support for the strategic grid framework and that there are differences in planning aspects among organizations, depending on their location in the grid. The implications of these findings for IS and IS planning are then discussed.     

The management of managers: A review and conceptual framework

The management of managers is an important contemporary concern, but the literature on the issue is not well integrated. This paper reviews key sources on the topic across organizational economics, human resource development and strategic human resource management. It presents a novel interdisciplinary framework for analysing how firms manage senior managers and for guiding future research, arguing that firms adopt different styles to attract–defend, develop–renew and motivate–harvest their senior managerial resource, depending on their contexts and choices that are made in the firm over time. The notion that some styles draw on early identification of élites while others treat management identification as more of an emergent problem is central to the typology. Within each of the styles identified, effectiveness in the management of managers hinges on recognizing and handling certain strategic tensions and problems.