How important to the success of Berkshire Hathaway’s strategic planning is Buffett’s

criteria for investments? Please discuss the key aspects of Strategic Planning (as
discussed in the readings) as it relates to Berkshire Hathaway.

Buffet’s criteria for investments contribute to Berkshire Hathaway’s strategic planning success
because of the data he pays attention to and expectations he has of leadership in the
companies he buys. All of the managers of the companies he invested in stay with the company
because he was looking for leadership that had built successful businesses and wanted to
continue to run them (Anand & Jayanti, 2009, p. 4). Buffet bought huge stakes in companies
and expected management to stay and build something great, especially because he was
mostly worried about the long-term development of the business (Anand & Jayanti, 2009, p. 6).
Strategic planning is about organizational goals and what an organization can do and prioritize
now to achieve those goals (Lusthaus, 2002). An example of strategic planning in Buffet’s
investment criteria is when he invested in Coca-Cola. He saw potential in this company, but it
wasn’t until the CEO changed the company’s strategy that Warren was interested. The
company’s potential wasn’t enough for him to pull the trigger, but once the CEO called for a
change in strategy and began strategically planning did Buffet want shares in the organization.
Buffet’s focus on the long-term is what changed his interest in Coca-Cola with the CEO’s values
and his own more closely aligning.

Anand, B. N., & Jayanti, S. A. P. (2009). Berkshire Hathaway. Harvard Business School. 

Lusthaus, C., Adrien, M., Anderson, G., Carden, F., & Montalván, G. P. (2002). Organizational
Assessment: A Framework for Improving Performance. Washington, D.C.: Inter-American
Development Bank.