Long-Range Planning in the Present World Environment Assignment

Long-Range Planning in the Present World Environment - Assignment Example Terror attacks, war, and nuclear dilemmas facing the world were additional topics requiring brainstorming at the event. Former U.S. President Clinton maintained that climate change is the only crisis "that has the power to end the march of civilization as we know it." Otherwise, "There is no reason for pessimism," declared Jeroen van der Veer, chief executive of Royal Dutch Shell (Environment News Service 2006). A Dutch managing director claimed that 'long-range planning is nowadays seen as an academic exercise' given that the times are uncertain and the environment turbulent. We have heard that the polar ice cap was depleted by a staggering fourteen percent between the years 2004 and 2005. Now if another Ice Age was to commence in six to seven years and we were sure that this would happen, companies could do away with long-range planning. Since there is no definite date for the end of the world, however, companies must do what they have always done - plan and forecast. Yes, there are forces beyond the control of people of the world. Besides, threats of violence around the globe have not been put to an end. We have already witnessed the effects of war and terror on the economic state of the world. Still, uncertainty has always been the present state of the world. ... Companies of all sizes continue to operate everywhere on earth. Life is going on without any surety as to what would happen in five to ten years' time. Natural disasters do occur and both small and large companies do lose a lot of money. Firms die and new ones are born. CEO's retire and younger ones take their place. Nevertheless, companies must continue to make long term plans about running their businesses as productively as possible, taking into account the external factors that could disturb the process in between. No company can survive with its focus on a big scale disaster. Therefore, businessmen would go on making budgets and deciding how to increase their sales over the coming years. Short and long term planning combined is the lifeblood of all firms and would be carried on for as long as the earth endures. Furthermore, today's business environment is fast changing because of innovations in technology. Companies must be taking into account all factors that spell change whils t planning; these factors not only include technology but also forces that the world does not fully understand at this point in time. As Gordon C. Robbins (1995) puts it, "A good deal of organizational planning . . . is like a ritual rain dance. It has no effect on the weather that follows. . . . Much of the advice related to planning is directed at improving the dancing, not the weather." Long-Range Planning Business planning has two aspects: quantitative and qualitative. Quantitative planning is number crunching based on market reports, for example. Qualitative plans, on the other hand, consist of descriptions and explanations. A long-range business plan includes both qualitative and quantitative aspects. It is the qualitative aspect that