Abstract

This article is a report on some current practices in long-range profit planning, and on some of the benefits of charting a company's future growth. Of course, the techniques of long-range profit planning are subject to still greater refinement for optimum effectiveness. Four strong external pressures in particular affect the present source of earnings of many companies and thus encourage management to give increased attention to long range planning. These are: 1. Squeeze on profits: The return on net worth for all manufacturing companies has been declining. 2. Changing end-use markets, Numerous changes in the living habits and tastes of the consumer have necessitated major changes in marketing programs. 3. New technologies and product obsolescence. Research is playing an increasingly important part in the development of new products. 4. Integration in industry and competitive structures, Integration and diversification are constantly changing the competitive picture.