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The different roles that manufacturing can play in a company''s efforts to formulate and achieve its strategic objectives can be described in terms of a developmental continuum. At the lowest "internally neutral" stage, top managers regard production as a low-tech operation, incapable of influencing competitive success. Stage 2 companies seek an "externally neutral" parity with major competitors on the manufacturing dimension. This attitude is often found in America''s smokestack industries. Stage 3 organizations, on the other hand, expect production to support and strengthen the company''s competitive position, and manufacturing investments are screened for consistency with the business strategy. The fourth and most progressive stage arises when competitive strategy rests to a significant degree on a company''s production capability.