The economy of the 1980s presents significant problems and no easy promises for business. In a slow‐growth, high‐inflation environment business will have a difficult time making profits grow faster than inflation. Developing strategies to do so, however, is the art of strategic planning.

It has been obvious for some time that the U.S. manufacturing industry has been on a downward slide. However, the recent recession has accelerated the speed of the decline to the point of public outcry. Production, and thus employment in some industries is down by a third. This, in turn, is...