Strategy formulation and divisional performance judgement in companies

Abstract

Examines strategic planning process in relation to a selection of new projects in various divisions of multidivisional companies among different industries in Singapore. Studies and analyses topics such as types of yardstick used by management for selection of such projects, acceptable level of profits and manner for setting profit goals for various divisions, and the corresponding performance judgements on those divisions by such companies. Results highlight the various strategic decisions conducted at head office level as opposed to divisional level. Results also indicate that satisfaction of corporate goals with no inter‐divisional comparison is the most important criterion for performance judgement of the various divisions in such companies. Also highlights the prime methods employed by such companies for evaluating future profitability.