Definition

Managerial preferences

Managerial preferences are the likes, dislikes, beliefs and perceptions that influence a manager’s contributions to the strategic planning process; influencing what a company will do and how it will do it.

Managerial preferences are powerful forces and they can have both positive and negative impacts. They can provide the stability necessary to guide a company through periods of significant change. Or they might prevent the company from perceiving the required changes and making the strategic and operational decisions required to adjust to the competitive forces in its markets.

When a company is not reaching its goals, management changes are often necessary. Bringing in new managers with different preferences can facilitate changes in strategic direction.

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