Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success

Academics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some “rational” elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.     

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.     

Planning Your Way to Job Growth

This paper examines the impact of comprehensive community planning on job growth in a US setting. Comprehensive planning is carried out in many communities, usually at the city or county level. Analyzing county-level data from the state of Georgia collected using a survey of planning professionals, we find that several aspects of planning and the subsequent implementation of the plan can have large impacts on job growth. We find that zoning standards increase job growth, but that it makes little difference how strict those zoning standards are. The largest increases in job growth can be captured simply by consistently following the adopted plan. This is likely due to the signal sent by following the plan that the local government can be trusted to keep other promises made in the process of attracting new businesses. Finally, the most innovative comprehensive plans were associated with lower job growth, at least within our 5-year post-plan study period, perhaps because already struggling communities pass innovative plans in hopes of correcting their shortcomings. The lesson our research holds for planners is that following the plan is likely more important for its success related to economic development than the particular features in the plan.     

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.     

Strategic planning for increased profit in the small business

This article examines the problems facing the owner-managers of small businesses, and details the investment required in strategic process development which would guarantee the critical 5 per cent difference to ensure the successful growth and adaptability of the company. Formal strategic planning needs to blend with team development to create the concept of ‘strategy-in-use’ and the development of effective management teamwork out of a planning process.     

Generic Strategies and Business Performance: an Empirical Study of the Screw Machine Products Industry

Select businesses in industry may attempt to compete through distinct strategies. But some may be successful in adopting distinct strategic profiles while others may not prove successful. In this study it was expected that six different groups of businesses might be present in the empirical exploration – those competing successfully with the low cost strategy and those competing unsuccessfully with this strategy; those competing successfully with the differentiation strategy and those competing unsuccessfully with this strategy; and those competing successfully with low cost and differentiation strategies and those competing unsuccessfully with these strategies. The results of the investigation portray the presence of three strategic profiles. They are unsuccessful low cost businesses with the lowest performance, unsuccessful differentiated businesses with the second lowest performance, and successful businesses with combination strategies with the highest performance.     

An exploratory study of ERP implementation in Saudi Arabia

Enterprise resource planning (ERP) is being implemented by many organisations as a potential solution to their businesses. In spite of its appeal, ERP has challenges and difficulties in its realisation, especially in developing countries. In this article, existing trends and success factors for ERP implementation in Saudi Arabia is investigated. The results of this study apply, to a large extent, to other developing countries in the Middle East and other oil producing countries. The study captures the best implementation practices, difficulties encountered, critical success factors and benefits realised. Most organisations suffer serious time and/or cost overruns in ERP implementation. Management commitment and the existence of a clear strategic objective were found to be critical for the success of the ERP implementation. Change management programmes and extensive training were found to be essential for smooth implementation process.     

Long range planning of U.K. and Japanese corporations—A comparative study

The author conducted mail surveys on long-range planning systems in Japanese and British corporations. He also made a number of visits to corporations in both countries to analyse the similarities and differences in the planning systems.In the U.K., the clarification of goals and the resource allocation are emphasized but in Japan clarification of goals and basic problem finding are stressed.The strategic projects are not necessarily formulated in the long-range planning process. The relationship between the project and the long-range planning was analysed and in both countries, the trend of long-range planning is towards more strategy orientation than quantitative computation.The planning process in Japan is more centralized. The management committee plays an important role in reviewing and making the final decision. In the U.K., the plan initiation is more decentralized, and in the final decision the board of directors plays a more important role. The trends are, however, from bottom up approach to top down approach.Goals expressed in the long-range plan of the U.K. corporations put more emphasis on financial goals, but that of the Japanese corporations emphasizes growth and employee welfare.Regarding the style of strategic decision-making the subjective responses show that it is partly analytical and partly intuitive. There are some differences between two countries, but this problem needs to be analysed further.To cope with uncertainty, multiple scenarios and contingency plans are more frequently used in the U.K., whereas in Japan the sequential decision is more commonly used. British corporations are better prepared for uncertainty than Japanese corporations.The key success factors of long-range planning are similar in both countries. The involvement of top management and cooperation of line management are two important items. Differences are that in the U.K. the planning system is emphasized in addition to the other factors, but in Japan clear goals are more emphasized.     

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.     

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.     

Strategies for start-ups

The article contains an empirical analysis of the strategy processes followed by new small firms to achieve speedy growth and success. It draws upon new evidence gathered by face-to-face semi-structured interviews with owner-managers of small firms. These interviews followed an agenda which investigated firm strategies in terms of environmental scanning, strategy implementation and evaluation and control. The article refers to 17 case studies of firms, constructed using this framework. Cluster analysis was used to split firms into groups of high, medium and low performers, using measures of growth, profitability and productivity. This primarily qualitative analysis is augmented by longitudinal quantitative evidence from the 150 firms from which the sub-sample of cases was selected. So the qualitative work is supported by statistical inferences from the larger dataset. This new empirical evidence supports the main hypothesis that even very young firms, who proactively use formal strategic planning, will tend to perform better than those who follow a more ‘visionary’ or reactive approach to running the business.     

Survival of the corporate planner

Like most businesses, corporate planning units come and go. Based on a survey of 105 coporate planning units in the U.K., this article presents those factors, both external and internal to such units, which appear to have most influence on the creation, survival and success of corporate planning units.     

Resource constraints and information systems implementation in Singaporean small businesses

While the information systems (IS) literature has identified potential factors of IS implementation success, none has investigated the relative importance of these factors in the context of small businesses. Small businesses have very different characteristics from large businesses; notably, small businesses suffer from resource poverty. Without knowing the relative importance of key factors, small businesses may be expending their limited resources and energy on less important factors which have limited contribution to IS implementation success. This paper develops a resource-based model of IS implementation for small businesses based on Welsh and White's (Harv Bus Rev 59(4) (1981) 18–32) framework of resource constraints in small businesses and Attewell's (Organ Sci 3(1) (1992) 1–19) knowledge barrier theory. The model is then tested on a sample of 114 small businesses. The results show that small businesses with successful IS tend to have highly effective external experts, adequate IS investment, high users’ IS knowledge, high user involvement, and high CEO support. External expertise is the predominant key factor of IS implementation success in small businesses.     

Drivers of internationalization success: a conjoint choice experiment on German SME managers

Internationalization is a common growth strategy for small and medium-sized enterprises (SMEs). However, SMEs face several challenges within the internationalization process. As SMEs are characterized by limited resources, managers are constantly involved in a decision-making process concerning the allocation of the SMEs’ resources. Therefore, internationalization can be understood as a complex, multidimensional decision process. Based on a set of 2244 internationalization decisions made by German SME managers, the present study examines how eight strategic and structural factors drive the perceived international success of SMEs. When applying conjoint choice analysis, the results suggest that especially equity financing in the internationalization process, an appropriate market selection as well as proactive motives, and a long-term scope can drive SMEs’ international success. Moreover, it becomes evident that strategic factors are more relevant for successful internationalization than structural factors.     

Corporate planning in small companies— a survey

The current state of research on corporate planning is directed at investigations of actual practices within specific industries. It is believed that by so doing, a more generally applicable theory of corporate planning will ultimately be developed. Within this broad framework, the study reported upon in this article was undertaken so that a determination could be made of the current level of actual planning by small businesses. More specifically, it focuses upon the corporate planning process within small and medium sized companies located in New England, U.S.A.     

家族企业网络化成长模式的主要影响因素及机制:基于中国东西部地区的实证研究

本文利用浙江、重庆等东西部省市家族企业的调查数据,实证检验了资源/战略需求、关系治理、权力结构、企业家特质对家族企业网络化成长模式的影响及机制,结果发现,资源需求对二级网络持久度有显著的负向影响,对二级网络开放度有显著的正向影响;合作机会对网络范围、二级网络强度有显著的正向影响;关系管理对一级网络强度、二级网络开放度有显著的正向影响;家族所有权对一级网络范围有显著的正向影响,对二级网络强度有显著的负向影响,家族管理权对一级网络范围有显著的正向影响;企业家年龄对一级网络强度有显著的负向影响,企业家行业工作经验对二级网络范围、网络持久度有显著的正向影响,企业家文化程度为大学本科的家族企业二级网络强度、二级网络开放度明显大于其它类型家族企业。研究结论对中国家族企业成长实践有重要指导意义。     

Business Characteristics of Male and Female Small and Medium Enterprises in the UK: Implications for Gender-based Entrepreneurialism and Business Competence Development

The aim of this paper is to identify differences, if any, between the characteristics of male and female businesses and to establish whether female businesses do constitute a distinct entrepreneurial group. The paper presents the results of an ongoing study based on a national survey of nearly 6000 small and medium enterprises (SMEs) in the UK. Given that existing research tends to focus, in the main, on the pre-start up and start-up differences, this study aims to identify gender-based differences between male and female owned/managed businesses in their post-formation stage. A gender-based business competence development model is developed and a case is made for what is termed 'gender-based entrepreneurialism'. It is argued given that established male and female businesses exhibit different characteristics, gender-based entrepreneurialism should be acknowledged and considered by policy makers within the SME sector. Female owned/managed businesses may require differentiated policies beyond the pre-start up and start-up stages for developing business competencies and to nurture their growth and development.     

Using Single Respondents in Strategy Research

A survey of empirical papers has revealed a number of studies that have used single respondents, usually the CEO or a top management team member, to make inferences about certain strategic dimensions of their business. In this note, we highlight some of the problems in using this approach. We base our comments on a study of 76 businesses where multiple respondents were accessed. We conclude that, because of often wide variations in responses between members of the same top team (measured by Cronbach alpha), the use of single respondents in this type of strategy research is probably unreliable.     

PIMS: A tool for developing competitive strategy

PIMS (Profit Improvement of Market Strategy) is a programme of the Strategic Planning Institute designed to provide a factual and scientific tool for strategic planning. Its great strength lies in the data base of comprehensive data, covering market, competitive and production structure, on over 2000 businesses spanning a period of at least 5 years. It reflects strategic experience of a wide range of industries, in a wide range of competitive environments.Research is carried out on the data base, focusing on those structural and operational characteristics which determine longer term performance, to discover the empirical ‘laws’ of business strategy. These are incorporated in a series of profit and cash flow predicting models encapsulating the strategic experience in the data base. The models are used to analyse members' businesses to highlight current strengths, weaknesses and strategic potential as well as to indicate and evaluate strategic options, all on the basis of real business experience.