market: ford foundation recommended report, by Gordon and Howell, suggested a “capstone” course of business policy which would give the students an opportunity to pull together what they have learned in the separate business fields and utilise this knowledge in the analysis of complex business problems.
1900 -1930: era of mass production – maximizing output, mostly single product, standardized and low cost product, catering to unique set of customers servicing limited geographical area – informal control and co-ordination. strategic planning was centred on maximizing output.
Paradigm two: planned policy formulation
1930-1940: changes in technology, turbulence in political environment, emergence of new industries, etc. Planned policy formulation and shifting attention towards functional areas in rapid changing environment.
Paradigm three: strategy.
1940- 1960:planned policy became irrelevant due to increasingly complex changes. Firms had to predict environmental changes. A strategy needed to be formed with critical look at basic concept of business and its relationship to the existing environment then.