Long Range Planning - by Razia

Long Range planning is the process of establishing long-term goals, working out strategies, policies and programmes to achieve these goals. In other words, long range planning sets long-term goals for the enterprise and formulates strategic plans for attaining these goals. It involves an attempt to anticipate, analyse and make decisions about basic problems which have significant effects well beyond the present operating horizon of the enterprise. Long range planning is done by the top management.

Long range planning generally covers a period ranging from 5 years to 20 years or even more. The period will vary from organisation to organisation. It may be five years for a departmental store and at least twenty-five years for a company intending to take up the production of timber. The purpose of long range planning may include technological leadership, increase in market share, globalisation of production and marketing, public image, etc.

Long range planning may involve capital budgeting, product planning,
project planning, acquisition of competing units. It may involve a complete change in outlook of the business. It deals with the broad technological,
financial and competitive aspects of the business. Because of this, long range planning is associated with a great deal of uncertainty. Its success will be determined by the ability of the organisation to predict and deal with the environment.