A review of research on strategic planning found support for the proposition that strategic planning by top executives improves an organization’s performance. They also found that strategic planning was more important as the complexity and ambiguity of the environment increased. Strategy formulation will not improve organization performance unless the strategies are relevant and feasible, they are communicated to middle and lower-level managers, and these managers become committed to implement the strategies. A relevant strategy takes into account changes in the external environment, and it is realistic in terms of the organization’s strengths and weaknesses. The strategy should reflect the core mission and high-priority objectives of the organization.