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By Clive J. Sutton

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18 The nature of corporate strategy and iilvestment in plant and equipment that will pay off in the long run. But when salaries are decided and promotions are arranged, there is a tendency to look at performance against the profit target this year" (Taylor 1977, p. 7. Italics added). 3 The payoff from corporate strategy The use of corporate strategy is spreading, and although not all firms benefit from its introduction, there is a growing body of evidence to confirm the potential benefits of formal strategic planning.

Steel industry in the early 1960s. ) which was still owned by the state, the major steel producers had then been denationalized following the initial moves towards nationalization in the 1950s. One of the major producers, Stewarts and Lloyds (S & L), had excess capacity for the manufacture of steel billets, and were seeking tied outlets among the independent rerolling firms who purchased billets for further processing. S & L therefore proposed to take over Whiteheads Iron and Steel Company, and they made an offer to buy in December 1962.

As a result, a typical large steel mill is not restricted to the manufacture of steel but includes some preparatory processes, such as the production of pig iron, and some later-stage processes, such as initial rolling of the hot metal. On the other hand, once the metal has had to be cooled as part of the production process (for example, in annealing) or loses heat in processing (for example, after initial rolling) then the purely technical argument for vertical integration becomes less imperative.

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