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It forces managers to appraise overall performance in relation to long-range objectives and on both current and future goals.Clarifies and simplifies day to day decisions since managers have a clear picture of where the company wishes to go.Helps appraise a company that a firm may wish to acquire. Can also be of great use in cases of mergers.It generally gives a better and clearer guide to the survival of the organization. Helps to keep the organization always on course.
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