Strategic Planning in a Turbulent Environment: Oil Majors' Evidence

This report, based on Robert M. Grant's study, investigates the evolution of strategic planning within the oil industry, a sector characterized by significant environmental turbulence. The research analyzes the strategic planning systems of eight major oil companies, revealing how these organizations adapted their approaches in response to unpredictable market conditions. The study challenges the traditional dichotomy between rational design and emergent process approaches to strategy, suggesting a reconciliation through planned emergence. It highlights the importance of decentralized strategy formulation, coordinated by corporate guidelines and performance targets, fostering adaptation and responsiveness. While these systems proved effective in navigating volatility, the study also notes limitations in terms of innovation and analytical sophistication. The findings contribute to the understanding of strategic management in complex, fast-changing business environments.