Title: Strategizing in the real world

Authors: William H. Starbuck

Addresses: ITT Professor of Creative Management, Stem School of Business, New York University, New York, NY 10012-1126, USA

Abstract: Strategic planning has insignificant effects on profits for four reasons. First, formalization undercuts planning|s contributions. Second, nearly all managers hold very inaccurate beliefs about both their firms and their market environments. Third, no-one can forecast accurately over the long term. Fourth, several fundamental barriers make it very difficult to attain high profits through strategic actions. However, planners can make strategic planning more realistic and can use it to build healthier, more alert and responsive firms. They can make sensible forecasts and use them to foster alertness; exploit distinctive competencies, entry barriers, and proprietary information; broaden managers| horizons and help them to develop more realistic beliefs; and plan in ways that make it easier to change strategies later.

Keywords: corporate strategy; forecasts; perceptions; plans; strategic planning; strategies.

DOI: 10.1504/IJTM.1993.025760

International Journal of Technology Management, 1993 Vol.8 No.1/2, pp.77 - 85

Published online: 24 May 2009 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article