Information Sources for Planning Decisions

by Francois DeCarbonnel, Roy Dorrance



The article highlights that strategic decisions involve responses to changes or anticipated changes in economic and competitive conditions. Two types of strategic planning procedures are discussed herein the first involves formulation of a competitive strategy developed from an internal appraisal of the company's product lines relative to the competitors faced and the second type of procedure is non-recurring and involves evaluation of new lines of business or products through an external appraisal of opportunities. This article will outline the informational requirements for strategic planning and indicate how the information can be obtained. Generally, the firm needs two types of information for the purpose of strategic planning. It must first gather information on the characteristics of each of the industries in which it is involved or on industries into which entry is being considered. It must also be able to determine changes in behavior and plans of the major competitors of each of its product lines or to evaluate the competitive environment for a new line of business. In both cases the firm should develop a formal method for assimilating and updating relevant information. A database for strategic planning should be designed.

California Management Review

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