Lira Ltd. Is a company manufacturing designer socks. While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changes in envirnoment by making changes in its plan. However, it becomes difficult for the managers of the company to accurately foresee future trends in the environment. Competition in the market upsets its finacial plans, then sales targets have to be revised and, accordingly cash budgets also need to be modified since they are based on sales figures.
States the limitations of planning highlighted in the above lines.