BHEL is a very large public sector company employing about 75,000 employees and about Rs. 10,000 crore capital. In the beginning of 1986, the company was considering its long term strategy of changing its business portfolio mix in a way that it could help to maintain the company's high growth with profitability and adequate liquidity. The focus of the case is on understanding the linkages between the company's environment, strategy, control systems, and financial performance and policy.