Managerial Perceptions and the Normative Model of Strategy Formulation

R. Duane Ireland, Baylor University
Michael A. Hitt, University of Texas at Arlington
Richard A. Bettis, Southern Methodist University


A group of 56 managers of varying hierarchical rank were given 30 simulated cases to analyze. Perceptual and objective factors were included in the cases to allow analysis of the factors that were used to assess the cases. Results provide evidence that assessment of the firm and its environment varies as a function of organizational level.