A four-phase model of multinational corporate planning proves useful for evaluating and improving corporate planning systems. Advances in explicit formulation of issues and alternatives, quality of preparatory staffwork, participation and guidance by top management, and effectiveness of implementation mark each phase.

A hypothetical case illustrates managerial problems in a firm that has lost strategic control of technology and its competitive edge by becoming insulated from technological realities and by allowing important technological decisions to be made by lower-level management or technical people. The company redefines its focus and prescribes remedies in terms of R&D project selection, competitive product position, strategic performance, and a more disciplined approach to monitoring the progress of R&D projects.