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A business firm's ‘niche’ or comparative advantage typically has a half-life of years rather than decades. Strategic planning must assure a stream of new ideas that allow the firm to find new sources of comparative advantage. Strategic planning must focus attention on the initial stages of the decision-making processes—opportunities and occasions for choice, and the design of new action strategies for products, marketing, and financing. Product identification and alternative generation are crucial components of strategy. Strategic thinking must permeate the entire organization. Effective identification of employees with the organization's strategy requires their exposure to the basic postulates that underlie strategic plans.
Herbert A. Simon (Fri,) studied this question.