Corporate Strategy: Political Assessment and Profitability

Abstract

In this chapter, I review the relationship between corporate strategy formulation, profitability and the role of environmental scanning (and, in particular, political risk assessment). The basic thesis is that corporate performance is determined, at least in part, by effective strategy formulation and planning, which in turn are heavily dependent on a comprehensive understanding of the environment within which the corporation operates. Scanning is the usual method adopted by corporations to gather information about the relevant environments and political assessment has emerged as an integral part of this corporate function.