Journal article
Strategic Planning and Sustainable Growth
Journal of world business : JWB, Vol.20(3)
01 Oct 1985
Abstract
Important components of the strategic plan are given concrete expression in the capital budget and the decision criteria applied in the formulation of that budget. Assuming management's goal is positive growth, planning may take place by direct (acquiring newly created assets) or indirect (acquiring existing assets) investment. Whatever path of growth is selected, no growth rate can be sustained indefinitely. Growth is a self-limiting process, giving birth to technological, behavioral, manpower, financial, and institutional restraints. Using Higgins' (1977, 1981) formula, 5 scenarios are analyzed in terms of sustainable growth: 1. direct investment, stable prices, and no taxes, 2. direct investment, rising prices, and no taxes, 3. direct investment, declining prices, and no taxes, 4. direct investment, stable prices, plus taxes, and 5. direct investment, rising price level, plus taxes. The objective should be to calculate a growth rate that can be sustained over the planning period while identifying the corporate adjustments necessary to maintain it.
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Details
- Title
- Strategic Planning and Sustainable Growth
- Creators
- John ClarkMargaret ClarkAndrew Verzilli
- Publication Details
- Journal of world business : JWB, Vol.20(3)
- Publisher
- Elsevier Science Ltd
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Identifiers
- 991019184038604721