Abstract
What is the relationship between Strategic Planning and Company Performances in Chinese companies? Is there a correlation between Company Performance and the Strategies adopted by these companies, using the Miles and Snow model for Aggressiveness Strategies? And is it possible to say something more about what kind of Strategic Planning gives better Company Performances? We wanted to separate here between the Planning which is related to what is called Competitive Intelligence and other activities related to Planning. The Idea was to be able to say something about the importance of Competitive Intelligence. We also wanted to use more extensive statistical analysis with more variables in light of the criticisms that has been raised about the methodology of previous studies. We found that better planning had a positive effect on a number of key business performance measures. We found that there was indeed a distinction between the different strategies selected and Company Performance. The strategy type named Reactors performed systematically less well than companies who choose one of the other strategies. Moreover we found that there were differences between different planning activities and Company Performance and that activities related to Competitive Intelligence were on the average more important for Company Performance than other Planning activities.
Highlights
There are seemingly no ends of studies on Strategic Planning and Company Analysis
We wanted to focus on a special type of Long Range planning, namely the Competitive Intelligence (CI) function
Is the CI function more important for Company Performance than other types of Strategic Planning? is it possible to see what kind of strategies companies that perform better have chosen? To find out we needed to select a well acknowledged Strategic model and test it against the correlation between Strategic Planning and Company Performance
Summary
There are seemingly no ends of studies on Strategic Planning and Company Analysis. Why another one? For one thing the problem has not been solved satisfactory yet. We found that the number of variables tested in previous studies were quite limited in numbers This is an issue because Company Performance, but first of all Strategic Planning encompasses such a wide range of activities. CI is the practice of defining, gathering, analyzing and distributing need-to-know information to the organization’s decision makers As such it is a vital part of Strategic Planning. Even though its process is simple, following the so called Intelligence Cycle, each stage in the cycle is relatively complex This means that any study that wants to capture its significance needs to test a large number of different variables. The chosen strategy again defines the company’s competitive intelligence activities, explicitly or implicitly, along the same logic The result of these activities will again and to a large extent define the relative success of the company, or its performance. Is there reason to believe that Chinese firms should be different, or that the dynamic Chinese business environment might call for different approaches? Or do Chinese companies react and function in much the same way as Western companies when it comes to Strategic Planning and Company Performance? These were the questions and considerations which started this research
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