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?     

INTEGER GOAL PROGRAMMING IN ADVERTISING MEDIA SELECTION

The media selection decision allocates advertising dollars among competing media so as to optimize promotional and corporate objectives. Linear programming attempts to model this process have been complicated by multiple and often conflicting management goals, the need for integer solutions, and nonlinearities. This study offers a technique that is sufficiently robust to simultaneously handle these problems. An alternative media selection framework is presented and the results of an illustrative application of integer goal programming are discussed. The proposed model improves on linear programming by success fully providing for optimal, integer solutions in settings that more realistically reflect the complexity of the media decision environment.     

Integrated Management Systems — Opportunities and Risks for Corporate Environmental Protection

Environmental protection in companies is increasingly carried out using Integrated Management Systems (IMS). Based on empirical results, this article examines how IMS can be designed and how the integration affects corporate environmental protection. In particular, we discuss the findings of four empirical studies, which surveyed experiences of German and European companies.Our work shows, that the success of corporate environmental protection does not depend on whether the company has implemented a separate environmental management system or an IMS. What is crucial is the rank of environmental protection within the company's system of objectives. In case of goal conflicts, decision criteria in agreement with the company's system of objectives have to be formulated. Furthermore, the IMS model can have an effect on this issue. The results of a pilot project in the automobile sector are discussed to illustrate how to implement such an IMS on the basis of ISO 14001.Compared to isolated environmental management systems, IMS can even improve environmental protection, because ecological criteria can be considered from the beginning when designing customer-oriented products and processes.     

Environmental scanning—Does it help the chief executive?

Firms must correctly identify and analyze the nature of their strategic environments, their strategic oppurtunities and problems, and, formulate the precise strategy sets for corporate strategy for accomplishing the chosen organizational objectives and goals. This articles reports on a survey. Chief executives of industrial corporations provided their insights and experience (see Appendix I) and the findings are analyzed for the implications for other practising chief executives. The nature of environment which is strategic to a particular firm has considerable influence upon the firm's choice of strategies. The correct understanding of this influence is critical to the firm's organizational effectiveness. Only after a correct understanding can the chief executive formulate the precise mix of strategies and meld them in the strategy sets of the corporate strategy.The major findings indicate that the levels of difficulty experienced in accomplishing firm's objectives and goals depend upon the perceived nature of complexity, unpredictability and dynamism of the firm's strategic environments. The levels of clarity on strategic issues also depend upon these same attributes of environments. The formulation of strategy sets of corporate strategy are indicative of the ways by which the chief executive and his management team expect the firm to achieve its major objectives and goals by monitoring the strategy sets to keep in tune with the changing realities of the firm's strategic environments. General management, marketing and finance, were the vital group strategies, followed by production and research and development. External relations, personnel and procurement were the least important strategies. Firms operating in simple and stable environments experienced the least difficulty in achieving corporate goals, while firms in dynamic and complex environments experienced the greatest difficulty.     

Corporate planning for a church

The article provides a case history of the introduction of corporate planning into a small Methodist Church. It describes the methods used to secure a widespread involvement and participation in the exercise of those who attend the church, and draws parallels with business planning situations It also underlines some of the differences.The end product of the first stage of the planning effort was a series of project plans leading to increased activity directed at fulfilling the objectives defined for the church. The events described in this article occurred in 1972 and early 1973.     

Multimode time-cost-robustness trade-off project scheduling problem under uncertainty

The time/cost trade-off problem is a well-known project scheduling problem that has been extensively studied. In recent years, many researchers have begun to focus on project scheduling problems under uncertainty to cope with uncertain factors, such as resource idleness, high inventory, and missing deadlines. To reduce the disturbance from uncertain factors, the aim of robust scheduling is to generate schedules with time buffers or resource buffers, which are capped by project makespan and project cost. This paper addresses a time-cost-robustness trade-off project scheduling problem with multiple activity execution modes under uncertainty. A multiobjective optimization model with three objectives (makespan minimization, cost minimization, and robustness maximization) is constructed and three propositions are proposed. An epsilon-constraint method-based genetic algorithm along with three improvement measures is designed to solve this NP-hard problem and to develop Pareto schedule sets, and a large-scale computational experiment on a randomly generated dataset is performed to validate the effectiveness of the proposed algorithm and the improvement measures. The final sensitivity analysis of three key parameters shows their distinctive influences on the three objectives, according to which several suggestions are given to project managers on the effective measures to improve the three objectives.

     

Setting corporate objectives as a basis for action

This paper states that the purpose of corporate objectives is to initiate management action. If they do not change what management does they are worthless.There is a hierarchy of corporate needs analogous to Maslow's human needs. The corporate entity should define its objectives for each level of the hierarchy.Objectives for the lower levels should be to satisfy needs. To do more than this is wasteful.Objectives for the top, purposive level should define in practical terms a leadership position that is to be achieved by positive concentration of management effort and all other available resources.Objectives should be action orientated, unambiguous, readily understood and widely communicated.     

Establishing corporate objectives at Solvay

A step by step account of the method used for determining corporate objectives at the Solvay Company, one of Europe's major chemical manufacturers, written by the Assistant Director of Long Range Planning. He emphasises the need for:

1. 1. a careful analysis of data to establish facts about the past and the probable future of the company and its environment.

2. 2. a “hierarchy of objectives” varying from the “grand design” to the specific project.

3. 3. objectives which are quantified and specific.

4. 4. a dialogue amongst management to set objectives which are realistic and acceptable to line executives.

The article is supplied with practical examples, taken from the chemical industry and business generally.     

Setting corporate objectives

This paper states that ‘the resources are raw materials, people and capital. The private sector company can survive as such only by using all three resources efficiently’.These statements summarize the need not only for the setting of Corporate Objectives but the cogent and incontrovertible argument for such objectives being financial.Let no one doubt the painful process that is involved in determining the right objectives for the corporate entity or, indeed, for any entity which seeks to survive and continue.This is why the process of setting, accepting and working towards objectives has to start from the top but must continue throughout the whole organization. Who am I and where am I going?—is a question that is as valid for the Company as it is for the individual.The corporate objective of the Fisons Group is consistently to achieve profitable growth in real terms by increasing earnings per share and raising the return on capital employed.I hope you find this paper as constructive to you as it has been to me and my colleagues.     

The theory of the corporate life cycle

There appears to be a widespread management belief that the corporation is endowed with an inbuilt elixir for survival and growth, despite recent corporate declines.In this article, the author outlines and illustrates the operation of one of the newest theories on corporate activity—the corporate life cycle— and its use as a planning aid in determining where the company is and where it is going and as a relationary tool in predicting corporate trends for comparison with corporate objectives and the future operating environment.     

The theory of the corporate life cycle

There appears to be a widespread management belief that the corporation is endowed with an inbuilt elixir for survival and growth, despite recent major corporate declines.In this article, the author outlines and illustrates the operation of one of the newest theories on corporate activity—the corporate life cycle—and its use as a planning aid in determining where the company is and where it is going and as a relationary tool in predicting corporate trends for comparison with corporate objectives and the future operating environment.     

Corporate planning and management by objectives

Management by Objectives as described in literature has major shortcomings in not stressing that MbyO should start at the ‘top’, with a clear statement of the overall objectives of the business. MbyO assignments which are operated with middle management often have disappointing results, as the gap between their objectives and those at the higher levels becomes apparent. The practical difficulties of establishing overall objectives of the business is one reason, while another is that management consultants have sometimes operated corporate planning and MbyO as two separate assignments, or ‘techniques’, whereas they are two sides of the one coin. These articles detail how to establish overall objectives, which are then a firm basis for objectives throughout the business.     

Key strategic issues for public corporations

The public sector organisations play a dominant role in the economies of many countries and they are particularly important in developing economies. However, management in such organisations face special problems in corporate planning. In particular, they have as yet no clear-cut definition of their social and economic objectives, no accepted way of pricing so as to deal with ‘social overheads’ and no valid way of measuring performance in industries where low profitability is to be expected.     

Effects of corporate equity ownership on firm value

We investigate the valuation effects related to corporate minority block purchases for a European sample of 113 purchases over 1993–2006. We argue that corporate block ownership, as opposed to institutional or individual block ownership, has several unique characteristics and can create significant short- and long-term wealth for target and acquiring firm shareholders. Because target firms that exhibit signs of inefficient monitoring or agency problems benefit the most, we conclude that corporate block ownerships can align incentives and mitigate information problems in corporate business relationships.     

一种策略层项目计划的双目标优化方法

针对产品开发项目管理的实际情况,对策略层计划优化方法进行研究。以工作包的工作量估算为基础,以资源投入水平和工期最小化为目标,考虑各种约束条件,提出一种策略层项目计划问题的混合整数规划问题模型。以非支配遗传算法NSGA-II为基础框架,设计了一种改进的双目标遗传算法。该算法针对问题的特点,提出了基于资源平滑的解码算法。参考NSGA-III的关键特征,对拥挤密度计算方法进行改进。通过企业实际项目案例,验证了算法的性能和所提出的策略层项目计划方法的有效性。     

Currency exposure management

Few long range planners can be unaware that exchange rates have been unstable since the late 1960s. After the relative stability of the Bretton Woods era, the world is now in a state of floating currencies, in which exchange rate fluctuations have become an important factor in the business environment. Companies should recognize different types of currency risk exposure and define their corporate objectives, including an assessment of whether the corporate position is to be defensive or whether some well-controlled exposure is desirable.     

Corporate planning a review of questions and answers

This paper is about corporate planning, seen primarily but not exclusively from the viewpoint of operational research. The reasons for the rise of interest in corporate planning are examined, as are the contributions which O.R. has made or can make to corporate planning problems. An abstract discussion of these problems concentrates on those posed by increasing “connectedness” in the environment. After comparing the responses of the “commonsense manager”, the model-oriented operational researcher, and the cybernetician, the question is posed: “How can the operational researcher or planner enhance the adaptive capability of his organization?” A case study illustrates one possible form of solution, the “modular” approach; and another, the “zoom-lens” is outlined. The relevance of global system modelling to the widening problems of the corporate planner is also considered, and related to the concepts previously discussed.     

Objectives, missions and performance measures in multinationals

This article examines performance evaluation systems of fifteen multinationals — five German, five UK and five US — and how they relate to corporate strategy or mission statements in each case. The technique of analysis used is the multilayered case study approach, and includes ‘face-to-face’ interviews.The results, by authors Jeffrey Coates, Edward Davis, Stephen Longden, Raymond Stacey (Aston University) and Clive Emmanuel (University of Glasgow), are very instructive. The cases show a consistent use of missions/strategies, objectives and performance measures within the companies, but wide variation between them. Detailed tables are presented which show clearly the range of variation between the companies and countries concerned.     

PORTFOLIO MODELING IN MULTIPLE-CRITERIA SITUATIONS UNDER UNCERTAINTY

There have been many models for portfolio selection, but most do not explicitly include uncertainty and multiple objectives. This paper presents an approach that includes these aspects using a form of stochastic integer programming with recourse. The method involves the use of a time-based decision tree structure called a “project tree.” Using this basic format, an illustrative six-project example is presented and analyzed. Various forms of objectives are discussed, ranging from the maximization of expected portfolio value to the maximization of the minimum weighted portfolio deviation from two goals. In each case, formulated numerical problems are given, and the solutions derived are presented. The approach is shown to be very flexible and capable of handling a variety of situations and objectives.     

Investment Appraisal and Measures of Performance in Italian Divisionalised Companies

The aim of this study was to describe and analyse the current practice and trends in the development of management control practice as regards divisional investments in large Italian firms, using a survey questionnaire method. Some comparison with top North-American and German international manufacturing units were also made.The findings of the study supported two theoretical propositions. In the identification stage, firms tend to decentralise the process of capital budgeting and the control mechanism ensuring the link between corporate strategic objectives and capital expenditure projects at divisional level is based on guidelines produced by headquarters. In the selection stage firms which perceive a high interface level with the corporate strategic objectives in divisional capital expenditure tend to use discounted cash flow techniques when choosing one or more investment projects. When an economic approach is used to provide a comprehensive measure of performance, the theoretical framework fails to predict the relationship between corporate control and performance evaluation system in divisionalised companies. Essentially, financial control combines non-financial measures, used to understand manufacturing operations, with traditional accounting measures, used to understand the effects of manufacturing activities on the level of operating cash flow and operating income, as a comprehensive measures of performance in the medium-term of divisional investments.