Impact of Strategic Planning on Profitability of Mashhad Food Industry Companies

Subject Areas : مدیریت

Parisa Alizadeh ¹ ( PhD Student, Department of Agricultural Economics, Ferdowsi University of Mashhad, Mashhad, Iran )
Hossein Mohammadi ² ( Associate Professor, Department of Agricultural Economics, Ferdowsi University of Mashhad, Mashhad, Iran )

Received: 2020-10-15 Accepted : 2020-10-15 Published : 2019-02-20

Keywords: profitability, Strategic Planning, Food Industry, Matching, Treatment effect,

Abstract :

Achieving company to desired goals significantly depends on strategic planning of the company. Strategic planning provides a framework for managing future vision. On the other hand, there is a strong correlation between strategic planning and the marginal product of the company. Due to the importance of food industry in employment, value added and investment, it seems necessary to review the profitability and factors affecting the existence of strategic planning managers to achieve the goals of this industry. In this study, first, the factors affecting the existence of strategic planning were analyzed using a Probit model and propensity score matching approach. Then, the effect of strategic planning on profitability has been evaluated by estimating average treatment on the treated group. Required data were collected through interviews with 33 marketing managers of Mashhad food industry. A simple random sampling method was used to select the sample size. The results of the Probit model showed that attitude to staff reception, attitude to team participation and job stability of managers have a positive and significant effect on the probability of strategic planning. After matching, the difference in the mean between treatment and control groups was decreased for attitude to staff reception, attitude to team participation, job stability of managers and knowledge of managers about the importance of strategic planning. The results of estimating average treatment on treated group showed that the profitability among the treated group units was 2.5 times greater than those in the control group.