Corporate Planning An Executive Viewpoint

Cover Corporate Planning An Executive Viewpoint
Corporate Planning An Executive Viewpoint
Peter Lorange
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This outwcird- looking search is crucial to improve the firm's chances to pursue more advantageous directions and to employ its resources in such a way 2 that they yield the best return.
Adaptation may be seen as the antithesis of extrapolation. Too often plans are being developed based on a strong element of extrapolating from the past what will be expected to be the activity levels of the future. The epithomy of this can be found when activity level forecasts in the plan increases in a harmon
...ious manner, say linearly or with a steady, fixed percentage every year. Even in cases where the plan is not built up around such visible numbers extrapolations, there might, however, be a strong element of "mental extrapolation" behind the development of the plan. For instance, we may have become familiar with how a business has been developing in the past. Consequently, we wish that such a pattern will continue; we are comfortable with a scenario that we feel we can un- derstand and relate to.

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