Strategic Planning’s Threat to Small Business

by Frank Gilmore



This article determines the potential effect of the accelerating adoption of strategic planning in large organizations on small business management. The introduction of strategic planning at the corporate level is providing top management with powerful new approaches for directing the profitable progress of large, multidimensional organizations. Acquisitions, mergers and the creation of new divisions can be handled more effectively in the light of existing strategic plans. Moreover, divisional progress can be more effectively measured in relation to strategic plans, both divisional and corporate. The experience of numerous large decentralized companies points to the feasibility of strategic planning for small business units. In addition to strategic planning at headquarters, these large companies have encouraged their product divisions to undertake similar activity. The problems of managing a product division and a small business are similar, in each case, the chief executive is responsible for the profit outcome of his enterprise. In many' instances, size will be comparable. Both organizations are usually concerned with a homogeneous product line and are usually organized on a similar functional basis.

California Management Review

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