[1] The work on the behavioral theory started in 1952 when March, a political scientist, joined Carnegie Mellon University, where Cyert was an economist.

[2] Before this model was formed, the existing theory of the firm had two main assumptions: profit maximization and perfect knowledge.

[6] Advocates of the behavioral approach also challenged the omission of the element of uncertainty from the conventional theory.

[8] The theory argues that while small firms may operate under the guidance of the entrepreneur, such a simple model does not describe larger corporations.

These larger firms are coalitions of individuals or groups, which may include managers, stockholders, workers, suppliers and so on.

Cyert and March mentioned five goals which real world firms generally possess: production; inventory; market share; sales and profits.

[9] In this model goals are not set to maximize relevant magnitudes such as profits, sales and market share.

It gave insights in the process of goal formation and fixation of aspiration levels and resource allocation.

The virtual assembly of the firm, with the decision-making process as the unit, for the purpose of predicting their behaviour is highly questioned by critics.