PLANNERS' PERCEPTIONS OF THE STRATEGIC MANAGEMENT PROCESS[1]

This paper discusses the foundations of the normative model of strategic management and reports the results of empirical research that examined the validity of the model from the perspective of practising planners. It was concluded, on the basis of the responses, that the normative model of strategic management is an accurate representation of what planners believe to be the steps in the process at both the corporate and business-levels. While the steps were all included, there was significant variation among the relative importance of the various steps.     

Biased valuations, damage assessments, and policy choices: The choice of measure matters

Damages from, for example, an oil spill can be measured by how much people are willing to pay to avoid them, or by the minimum compensation they demand to accept them; and decisions to clean up can be justified by the willingness to pay to do it or by the compensation necessary to forgo it. Contrary to the usual official and unofficial conventions that the choice of measure is of no matter, the empirical evidence and intuitions of most people strongly suggest otherwise. The appropriate choice of measure appears to turn, not on legal entitlements, but on the reference state people use to judge negative and positive changes — a criteria that is likely to call into question most estimates of the damages of increased health risks and the value of environmental mitigation efforts.     

The Euro-Mediterranean Partnership

The Euro-Mediterranean Partnership (EMP), a framework for political, economic and social relations between the European Union and its Southern Mediterranean neighbours, saw daylight in Barcelona on 27-29 November 1995. Ten years on, the international conditions in which the EMP operates have been radically altered by events in the Middle East as well as the enlargement of the EU. How well has the partnership performed in this changing environment and what are its prospects for the future?

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* Research Fellow at the United Nations University—Comparative Regional Integration Studies (UNU—CRIS), Bruges, Belgium.     

Incorporating choice dynamics in models of consumer behavior

This paper presents a framework for organizing and discussing factors influencing consumer choice dynamics, how these factors may be incorporated into models of buyer behavior and problems that may arise in estimating such models. The paper identifies research issues and delineates possible approaches. Proceedings of Session on Choice Dynamics at the Banff Symposium on Consumer Decision-Making and Choice Behavior. All authors share equally in content and remaining errors.     

Fast growing small entrepreneurial firms and their venture capital backers: An applied principal-agent analysis

First the empirical background of the U.K. venture capital industry is developed using a panel of major U.K. venture capital funds over the period 1988–92. Then a framework for applied principal agent analysis is developed, focusing on risk management and information. Under risk management it explores attitude to risk, risk sharing and bearing, and the effects of risk bearing on effort. Under information handling, it explores information systems, information asymmetries between investor (venture capitalist) and investee (entrepreneur), and ways of attenuating them, and information variance and costs. Finally, the contract between investor and investee is seen as a device for trading risk and information. The implications of this trading for risk bearing, effort and efficiency are explored. The whole analysis is supported by a detailed case study which reflects current practice in the U.K. venture capital industry. The evidence provides striking confirmation of the applicability of the principal-agent model to the venture capital financing of hightech ventures.     

Testing the bases of ethical decision-making: a study of the New Zealand auditing profession

This paper reports on a survey of auditors in New Zealand which investigates the nature of the moral judgements they make on a series of problems with ethical dimensions. The framework adopted for this purpose is developed from earlier work which identifies a range of ethical principles which may be involved in business ethical decision-making. Auditors responded to a questionnaire which posed, firstly, several questions about the context of their ethical decision-making, and secondly, a series of vignettes elaborating problematical dilemmas which required the selection of one of four possible responses. Data was analysed to determine whether or not it confirmed previous findings in suggesting a predominant ethical orientation for auditors. The results were correlated with demographic variables in order to determine whether or not age, gender, position in firm and size of employee firm were significantly correlated to ethical response. The survey results, on the whole, confirmed the ethical orientation suggested by previous findings, but there were some unexpected results in three out of the ten vignettes examined. Although some correlations were found between the demographic variables and subject responses, the evidence of this survey does not strongly suggest a consistent significant correlation.     

Does the “management approach” contribute to segment reporting transparency?

Segment reporting creates an opportunity for companies to add value to the information they disseminate about their industry and geographic operations. This article examines the “management approach” to segment reporting from a user perspective that should be of great interest to corporate financial executives. The management approach to segment reporting requires companies to report segment financial information consistent with the way they manage their businesses. We conclude that, despite more segment data being reported, the potential of the new management approach to significantly benefit users is compromised by uneven compliance among reporting companies. The complicity of external auditors in compliance shortcomings should concern all stakeholders in the financial reporting process. Noting two high-profile examples of accounting fraud, we comment on how the management approach sheds light on Enron's operations, while WorldCom concealed important segment information due to probable auditor malfeasance.     

Strategies for NABE’s Long Term

NABE has engaged in a major “roadmapping” exercise to develop its strategies for the long term. Its goal was to determine NABE’s purpose, values, direction, and the means of achieving its goals. Four major initiatives are presented and discussed; and the importance of continuing professional education is emphasized, as is the critical role of NABE members’ participation in its activities.     

Economic Analysis for the UK National Ecosystem Assessment: Synthesis and Scenario Valuation of Changes in Ecosystem Services

We combine natural science modelling and valuation techniques to present economic analyses of a variety of land use change scenarios generated for the UK National Ecosystem Assessment. Specifically, the agricultural, greenhouse gas, recreational and urban greenspace impacts of the envisioned land use changes are valued. Particular attention is given to the incorporation of spatial variation in the natural environment and to addressing issues such as biodiversity impacts where reliable values are not available. Results show that the incorporation of ecosystem services and their values within analyses can substantially change decisions.