IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v10y1964i3p524-544.html
   My bibliography  Save this article

The Dynamic Effects of Planning Horizons on the Selection of Optimal Product Strategies

Author

Listed:
  • Marvin G. DeVries

    (Grand Valley State College, Allendale, Michigan)

Abstract

The selection of appropriate product strategies by firms must account for the expected long-run returns from the market a firm contemplates entering, relative to the expected long-run returns from the market it is currently serving. These expected returns must also reflect the capabilities a firm has to implement this strategy and the resulting competitive situations it will face. The mathematical techniques of Markov processes and dynamic programming are used in this paper to develop an analytic framework which will select optimal product strategies for a firm that are consistent with its capabilities, that will meet its competitive situations, and that will maximize expected returns in the long run. This model is applied to a selected set of Michigan machine tool firms. The results indicate the general importance of total firm capabilities and the greater importance of management capability over the supporting capabilities in the selection of optimal product strategies.

Suggested Citation

  • Marvin G. DeVries, 1964. "The Dynamic Effects of Planning Horizons on the Selection of Optimal Product Strategies," Management Science, INFORMS, vol. 10(3), pages 524-544, April.
    • Handle: RePEc:inm:ormnsc:v:10:y:1964:i:3:p:524-544
    DOI: 10.1287/mnsc.10.3.524
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.10.3.524
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.10.3.524?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:10:y:1964:i:3:p:524-544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.