Managing in uncertain economic times: The case for planning

The traditional organization format in most firms has been to separate production, marketing and distribution and accept a certain amount of friction at the interface of these functions. The price of this friction and the risks inherent in its acceptance make this an increasingly unattractive organizational alternative. New organizational structures that forecast, monitor and control materials flow between raw materials and customers in a systems context are required for intrafirm response and implementation to the challenges of a rapidly changing business environment. The article emphasizes these conclusions against the backcloth of a shortage aconomy.