Planning and the Growth of the Firm

Originally published in 1978. The type of firm focused upon in this study is the large manager-controlled business organisation, although the analysis is not restricted to this kind of entity, as firms of all shapes and sizes are finding it increasingly necessary to plan, particularly in environments characterised by rapid innovation and technological change. After an initial survey of various growth theories, the book analyses the vehicles of growth as well as the constraints, so that the process of growth is seen in the context of corporate planning and also within the context of planning in the economy as a whole. Some of the more important contributions to the economic theory of business behaviour are brought together and the implications of these works for micro-economic theory and managerial economics are determined. Particular emphasis is placed upon Marris’s growth model, and the theme of balanced growth – through the analysis of the diversification and financial aspects of planning – is developed. The planning process is also discussed within the public sector and selected case studies of local authority defence and health planning are examined.