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Research on the impact of formal strategic planning on firm performance has yielded mixed results. In this study, approximately 200 executives in five food processing industries were surveyed to examine the relationship between formal strategic planning and financial performance. A multiple indicator measure of strategic planning was assessed using confirmatory factor analysis. Results of the strategic planning-performance model indicate that use of strategic planning tools has a positive impact on financial performance as measured by the 3-year average pretax return on assets.
Gregory A. Baker (Fri,) studied this question.