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Increasingly many companies have recognised the need to develop more formal approaches to planning. The uncertainties of the market environment and the increased complexity of business decisions have provided an incentive to these organisations to seek ways in which corporate resources can be better allocated and contingencies provided for. Nevertheless, formal business planning still tends to be confined to the larger companies, and often those that are involved in so‐called fast‐moving markets. Thus the Unilevers and Procter and Gambles of the world are using highly sophisticated planning techniques, but many other companies still lag behind. This is due not so much to a lack of a resources to commit to the planning function but more often to a lack of appreciation of the necessity for planning.

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