In a large US steel firm, the corporate planning process in 1965 could be described as:
A)Integration of division strategic plans, iteration between divisions and the headquarters, and contact of banks to explore the best deal for providing capital
B)Forecast of demand, determination of targets for each district, determination of need for additional production capacities, decision from top executives, and investment
C)Marketing analysis, estimation of capital costs for the additional equipment, investment proposals, and investment
D)Forecast of demand, analysis of existing resources and competences (tangible and intangible assets), leverage of these competencies, and decision to invest

Question

Quizplus · Accepted Answer

The given process involves forecasting demand, setting targets, determining production capacity needs, decision making by top executives, and investment. This reflects a more centralized and hierarchical decision-making process commonly observed in the 1960s. Option A involves a more collaborative approach between divisions and headquarters, and option D involves leveraging existing competencies, which may not have been as prominent in the planning process during this time. Option C only focuses on marketing and investment analysis, which would not capture the full planning process for a large steel firm.

In a Large US Steel Firm, the Corporate Planning Process