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An analytic model for strategic control of corporate development

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  • Sarrazin, Jacques
  • Ruefli, Timothy

Abstract

The concept of strategic control as described by the authors [8] partitions the decision horizon of the firm into two segments. In the long term, information is not precise, goals are vague and constraints are unclear. The problem for the firm is, in spite of this ambiguity, to establish a development window at the beginning of this period that reflects long-run factors and can serve as a guide for short-term behaviour. In the short run, information is precise enough for conventional mathematical programming models to be used to guide attainment of the development window. This paper presents an analytic model that solves the long-run problem defined by the strategic control framework and generates the required development window. A numerical example is presented for illustrative purposes.

Suggested Citation

  • Sarrazin, Jacques & Ruefli, Timothy, 1984. "An analytic model for strategic control of corporate development," Omega, Elsevier, vol. 12(1), pages 43-51.
    • Handle: RePEc:eee:jomega:v:12:y:1984:i:1:p:43-51
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