This study examined major issues of restructuring and cost containment confronting graduate/research universities and the application of strategic planning to these issues. The study obtained data from a survey of administrators at 35 selected "Research I Universities" and site visits to six public and four independent universities at which approximately 150 administrators were interviewed. Seven of the ten universities visited had engaged in strategic planning. Universities were also engaged in various other processes to define their future directions such as assigning task forces to specific issues. Many interviewees emphasized the importance of having a "strategic vision" as distinguished from a strategic plan. The strategic planning processes typically provided a broad context for decision making; however, most operational decisions came from appointed committees and task forces addressing specific issues. None of the universities used their strategic planning processes as the immediate vehicle for identifying programs or departments for major reductions or elimination. A review of the literature on purposes of planning includes planning as a means to: acquire accurate information, interpret information and develop a vision, create a strategy for achieving a vision, implement a strategy, and obtain and allocate resources. (Contains 20 references.) (CK)