Long-Term Planning

Abstract

Gary reviews the site business plan that Alejandro has made. Among other things, it indicates that another warehouse will be needed shortly, as business grows beyond the current capacity and logistics flow intensifes. However, Gary knows that the Brazilian organization plans to build a new factory in three years’ time that will take significant volumes from the Argentinian site. Consequently, although the business plan is correct to assume that a new warehouse is needed when taking only the next year into consideration, it would have been clear, had Alejandro been able to see the wider picture, that the proposed warehouse would not be necessary. Gary therefore decides that looking three to five years ahead is more relevant for larger investments and therefore that a road map with that timescale is also needed, in addition to a shorter-term annual business plan.