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Abstract
This paper investigated the impact of components and contextual elements of strategic planning on the effectiveness of the strategic planning process. Specifically, the characteristics of planning and the overall effectiveness of planning processes in the automotive industry were studied. A large‐scale survey revealed that certain aspects of these firms’ planning processes were vital for their continued effectiveness. Functional coverage was identified as one of the most important component of strategic planning and provision of sufficient planning resources and the most important contextual element. The practical implications of this research for firms in the automotive industry are discussed.
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