Management Science

Strategic Management and Business Performance Peter Prevos 21 phratry 2005 1 Introduction A great amount of question has been devoted to evince a relationship surrounded by be after effort and argument capital punishment. The spectrum of conclusions ranges from strong positive correlations to contracts that the role of formal planning systems in business management is only informational (Rogers, Miller & Judge 1999, 567 568). Hill, Jones & Galvin (2004, 23) wee-wee position in this debate by claiming that strategic planning, on average, has a positive impact on company performance. This claim, further referred to as the Performance Claim, is based on research conducted by Miller & Cardinal (1994) and Rogers et al. (1999). Many academics inquiry the usefulness of formal strategic planning systems as a means to improve company performance and argue that tidy sum plays a critical role in determining free-enterprise(a) advantage (Mintzberg 1979, Hart 1992, Hamel 1996). In this essay, the claim that strategic planning has a positive in?uence on company performance, allow be evaluated. It will be argued that an organisation can not rely solely on formal systems to develop merged strategy.

Although empirical research points towards a positive correlation between strategic planning and company performance, these studies suffer from some methodological problems. It will further be argued that because strategic management is not an exact science, strategy formulation requires a great cumulation of intuition and company performance relies to some extent on serendipity. This does, however, not imply that strategic planning as a formal exercise is futile. Strategic planning is vital for earnest management of an organisation. Not as a means to darn the course for years ahead, but as a counseling to be able to anticipate the unpredictability of external in?uences. In the next section of this essay, the terms of the performance claim will be clari?ed. Following a discussion of research supporting and... If you want to get a full essay, bon ton it on our website: Ordercustompaper.com

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