Strategic planning and capital structure links: The University of Monterrey experience

Jose Eduardo Garcia Luna Martinez, University of Pennsylvania


Studies about strategic planning and change have been made in the past approaching the issue from different perspectives: strategic planning, capital structure and technology. It was not possible to find experiences of studies linking these three elements; only Tierney (2003) suggests an interaction among these factors. This case study of Universidad de Monterrey offers the opportunity to explore and describe the usefulness of strategic planning in a Mexican institution, the changes occurred in its market position and in its capital income structure for institutional development, and the interaction among these factors. It also allows the projection of future institutional needs and changes in capital income structure derived from requirements originated in its 2010 Vision and strategic plan. The case study methodology includes interviews and existing documents and data analysis. Selected market, academic and formative and financial indicators were used to assess past performance and changes (1994–2000); similar indicators were used to understand and define future strategic changes and needs (2002–2010). Competitive position and strategic change occurred; it also changed, in a planned fashion, the structure of capital income for investment and the overall financial performance of the Institution. These changes synchronically happened in UDEM's case. There was a clear understanding of desired future competitive position and strategic changes, and about further changes in the capital structure of income for development investment. Relevant in this experience was the consistency and discipline in the application of strategic planning methodologies. It was also important to have a stable, committed, innovative and knowledgeable senior executive team, the President's commitment with the planning methodology and plan, and a clear understanding that strategic planning must be linked with resources gathering and allocation. It was clear that planners, finance officers and decision makers were talking to each other.

Subject Area

Higher education|School administration|Business education

Recommended Citation

Garcia Luna Martinez, Jose Eduardo, "Strategic planning and capital structure links: The University of Monterrey experience" (2004). Dissertations available from ProQuest. AAI3124685.