Long-range planning is most often an extrapolation of the present. It answers the question of how to get the job done. For example, if you (as a city department head) plan to provide the same services with the same frequency to an expanded city, that is long-range planning (Bateman and Snell 2009).
In Arthur Andersen, planning function of management is based on unique strategic goals and competitive pressure, the need to meet customers' needs and preferences. "Once managers have assessed the various goals and plans, they will select the one that is the most appropriate and feasible" (Bateman and Snell 2009, p. 135). The planning function of management is to incorporate mission, vision, objective and goals into a well-thought development plans. For Arthur Andersen, the three basic strategic options are to grow, to remain static, or to shrink. The intent here is not to go into a detailed discussion of their application, but simply to point out the importance of establishing a clear theme of organizational direction and intent. Describing the overall strategy in clear terms is the pragmatic link to organizational objectives. Objectives, in turn, are the specific steps used to execute the defined strategy. Organizational goals are derived from the major categories of problems and opportunities, while objectives are derived from the specific issues that are listed as problems and opportunities. Thus, there will be a much larger number of objectives than organizational goals. Each objective is categorized under the specific goal that it supports. Worthwhile objectives meet certain criteria and are achievable. These conditions may be more stringent than they sound. Many times, too much is taken on in strategic-planning conferences, resulting in unrealistic expectations (Bateman and Snell 2009).
Legal issues, ethics and corporate social responsibility have a great impact on planning determining the main directions and framework of future performance. The legal norms and principles are the core of planning process. Similar to other accounting firms, Arthur Andersen pays a special attention to FASB and Codes of ethics. Ethical issues involve fair treatment f all customers and high morale, strict moral principles of the profession and in personal relationships. This description implies that the responsibility of individuals and firms is to identify and respond to market stimuli and to make profits for the shareholders. Any corporate action on social issues is considered to violate management's responsibility to shareholders (Gutman, 2002). As the most outspoken supporter of the fundamentalist position, According to an accepted manifesto of the managerial view, the modern professional manager also regards himself, not as an owner disposing of personal property he sees fit, but as a trustee balancing the interests of many diverse participants and constituents in the enterprise, whose interests sometimes conflict with those of others. What all this implies is that Arthur Andersen's managers have enough discretionary control of corporate resources to consider adding social responsibi