This chapter identifies the hypotheses and propositions which are tested in the study. The types of firms or operating units which constitute the focus of this study fall into three categories: the corporate headquarters of large multidivisional firms; individual divisions of such large, multidivisional firms, and independent firms. All three organization types are classified as energy intensive or non-energy intensive using the Standard Industrial Code (SIC) classification code, in conjunction with federal and private studies which have identified and categorized the degree of energy intensiveness of two-digit and four-digit SIC classification codes. The energy management dimensions and their components are the criteria by which the strategic responsiveness of firms to the energy environment is measured. The chapter provides the specific purposes of explicating energy management decision making. Energy management decisions are often portrayed as if they are almost exclusively determined by economic forces.