Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.

Question

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Research suggests that firms with planning systems that align with strategic-management theory (such as setting long-term goals, conducting environmental scans, and continuously monitoring progress) tend to have stronger financial performance over the long-term compared to their industry peers. This is because such systems help firms identify opportunities and threats, allocate resources effectively, and adapt to changes in the business environment.

Firms with Planning Systems More Closely Resembling Strategic-Management Theory Generally