November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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2.4. Long-term Plans
Long-term planning is usually of a broad, strategic (tactical) nature to accomplish objectives. A long-term plan is typically 5 to 10 years (or more) and looks at the future direction of the company. It also considers economic, political, and industry conditions. Long-term plans are formulated by upper management. They deal with products, markets, services, and operations. Long -range planning enhances sales, profitability, return on investment, and growth. Long-range plans should be constantly revised as new information becomes available.
Long-range planning covers all major areas of the business including manufacturing, marketing, research, finance, engineering, law, accounting, and personnel. Planning for these areas should be coordinated into a comprehensive plan to attain corporate objectives.
A long-term plan is a combination of the operating and developmental plans. The long-term plan should specify what is needed, by whom, and when. Responsibility should be assigned to segments. Long-term goals include market share, new markets, expansion, new distribution channels, cost reduction, capital maintenance, and reduction of risk. The characteristics of sound long-term objectives include flexibility, motivation, measurability, consistency and compatibility, adequateness, and flexibility. Long-range plans may be used for growth, market share, product development, plant expansion, and financing.
Long-range plans are details of accomplishing the strategic plans. ...
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