By John Grieve Smith (eds.)
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Extra info for Strategic Planning in Nationalised Industries
Sample text
It is interesting to note that in these crisis situations, top managers in such firms as Fisons, the Burton Group, Scandinavian Airlines and Electrolux have discovered that strategic thinking or strategic management is extremely effective without the usual apparatus of five-year planning, portfolio analysis, scenarios, etc. NOTES AND REFERENCES 1. For a list of the publications in each of these schools of thought, see: B. Taylor, 'New Dimensions in Corporate Planning', Long Range Planning, December 1976.
An attempt 16 Introduction and Summary to persuade the BAA to adopt a set of objectives proposed by the government was thwarted by the fact that the BAA had potentially conflicting statutory duties laid down by Parliament. BAA's corporate plans differ from those of British Rail in that they make assumptions about future government decisions on airport strategy for example, on Stansted versus a fifth terminal at Heathrow) on the grounds that they would otherwise have no effective basis for long-term planning.
The Plan is now more internally orientated; and it is seen as a guide to action based on decisions already taken, rather than as a means of arriving at strategic decisions. The process of strategy formation, with its inevitably heavy content of negotiations with the government, is now separated from corporate planning which has become essentially a tool of internal management. This change in the role of corporate planning has been associated with the setting-up in 1982 of five 'profit-accountable' business units: InterCity; London and the South East; Provincial Passenger Services; Freight; and Parcels.