Strategic planning as a complex and enabling managerial tool

1. STRATEGIC PLANNING AS A
COMPLEX AND ENABLING
MANAGERIAL TOOL
BY MICHAEL SONG, Y. LISA ZHAO, RICHARD J. AREND,
SUBIN IM
MD. IMRANUZZAMAN
M16232001
MBA-2016

2. INTRODUCTION
Technologies and market situations are changing very rapidly and strategic
planning is very much required for a firm to survive and increase growth.
Strategic planning is a complex process and claims trade-off but a firm does
business by practicing strategic planning and gets performance by increasing
efficiencies and loses innovative activity because of the inflexibilities.

3. PURPOSE OF THE STUDY
This study was conducted to figure out whether strategic planning hampers
or helps innovative activity of high-technology industry. It is found that, firms
use strategic planning to achieve both high returns on investment and
increase new product development projects.

4. DEPENDENT VARIABLES
New-product Development Projects
Return on Investment (ROI)

5. INDEPENDENT VARIABLES
Strategic Planning
Firm Age
Risk Taking
Knowledge-based Reward System

6. CONTROL VARIABLES
Product Innovativeness
Technological Turbulence
Market Turbulence
Market Growth
Firm Size
R & D Intensity
Formalization
Goal Congruity

7. CONCLUSION
It is figured out that high returns on investment and high level of innovative
activity can be achieved by taking strategic planning of higher level of risk-
taking and knowledge-based reward system. This study confirms that
strategic planning positively affects profitability but negatively affects
innovative activity for average firms.

8. B
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