The decision-making processes of two major early childhood education organizations in New Zealand were examined in this study; specifically, decisions affecting the availability of preschool education services and the acceptability of these services. In light of events of the mid-1970s, a free kindergarten and a playcentre were examined in conjunction with the Department of Education's role in early childhood education. Organizational features and their environment were analyzed to describe the development of four key strategies and to evaluate follow-up implementation. In addition to observations, three surveys of families and staff of the two preschools were conducted to determine decision-making processes. Findings indicated that the strategic choices analyzed produced satisfactory outcomes for the majority of personnel within the two organizations. However, these outcomes seldom improved the availability and acceptability of the services to social groups not already using preschools. It was suggested that changing social conditions and the growth of other forms of early childhood education indicate that playcentres, free kindergartens, and the government need to consider whether they should maintain the prevailing pattern of provision. (BJD)