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On the use of models in corporate planning

On the use of models in corporate planning The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A. JNTRODUCTI ON Much is made these days of planning models, which I take to mean models from which plans could be extracted. It seems odd to me to think there is, or can be, such a model, as odd as it would be to think there is, or can be, a set of medical instruments from which health can be extracted. Obviously, medical instruments can sometimes be used in providing health care, and models can sometimes be used in planning; but, to switch metaphors, when English is used in planning it does not thereby become planning English. The same is true for models: when they are used in planning they do not become planning models. Several years ago Thomas Naylor and Horst Schauland (1976) surveyed the planning practices of 2000 corporations in the United States, Canada, and Europe. They concluded : ‘In actual practice, relatively few firms have managed to integrate the financial, marketing, and production activities of the firm into a truly integrated corporate simulation model. Three notable exceptions to this rule are CIBA-GEIGY, IU International, and Anheuser-Busch. Each of these firms has successfully achieved the development and http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

On the use of models in corporate planning

Strategic Management Journal , Volume 2 (4) – Oct 1, 1981

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References (3)

Publisher
Wiley
Copyright
Copyright © 1981 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250020404
Publisher site
See Article on Publisher Site

Abstract

The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A. JNTRODUCTI ON Much is made these days of planning models, which I take to mean models from which plans could be extracted. It seems odd to me to think there is, or can be, such a model, as odd as it would be to think there is, or can be, a set of medical instruments from which health can be extracted. Obviously, medical instruments can sometimes be used in providing health care, and models can sometimes be used in planning; but, to switch metaphors, when English is used in planning it does not thereby become planning English. The same is true for models: when they are used in planning they do not become planning models. Several years ago Thomas Naylor and Horst Schauland (1976) surveyed the planning practices of 2000 corporations in the United States, Canada, and Europe. They concluded : ‘In actual practice, relatively few firms have managed to integrate the financial, marketing, and production activities of the firm into a truly integrated corporate simulation model. Three notable exceptions to this rule are CIBA-GEIGY, IU International, and Anheuser-Busch. Each of these firms has successfully achieved the development and

Journal

Strategic Management JournalWiley

Published: Oct 1, 1981

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